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anonymous

  • one year ago

you invest 3200 in an account that pays an interest rate of 7.25% compounded continuously. Calculate your balance after 12 years

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  1. anonymous
    • one year ago
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    @Shalante

  2. anonymous
    • one year ago
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    Use the continuously compounding interest formula \[A = Pe^{rt}\] P = principal (amount invested) r = interest rate t = time in years

  3. anonymous
    • one year ago
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    but what is e?

  4. anonymous
    • one year ago
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    e is a constant. It's irrational and approximately 2.71828. Use the e^ button on your calculate for more accurate estimations

  5. anonymous
    • one year ago
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    so that is e?

  6. anonymous
    • one year ago
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    yes

  7. anonymous
    • one year ago
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    so you'd put this in your calculator \[3200e^{(0.0725*12)}\]

  8. anonymous
    • one year ago
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    so A=3200*2.71^12*.0725

  9. anonymous
    • one year ago
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    7617.86 is the answer

  10. anonymous
    • one year ago
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    3200*e^(12*.0725) Use the "e" button and you get $7638.11 As you can see it makes a big difference. If you round, use more decimal points (at least 5) so you get a closer number

  11. anonymous
    • one year ago
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    it said it was wrong

  12. anonymous
    • one year ago
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    which number did you enter?

  13. anonymous
    • one year ago
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    @CuPc4kE99

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spraguer (Moderator)
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