PrincessAurora
  • PrincessAurora
** POR FAVOR WILL FAN AND MEDAL** Situation: You invest $900 in an account that pays an interest rate of 5.5%, compounded continuously. Calculate the balance of your account after 6 years.
Algebra
  • Stacey Warren - Expert brainly.com
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SOLVED
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jamiebookeater
  • jamiebookeater
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anonymous
  • anonymous
Do you know what compound interest is? Can you tell me a formula we can use here?
anonymous
  • anonymous
I can give a formula.
anonymous
  • anonymous
A=PE\[A=PE ^{rt}\] - A being amount - P being principal - E being mathematical constant - r being intrest - t being time in years

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More answers

PrincessAurora
  • PrincessAurora
I got 1251.87 is that right?
anonymous
  • anonymous
Not sure, how did you get that answer. Where did you place the numbers?
anonymous
  • anonymous
Never used the equation, so...still trying to understand the equation myself right now.
PrincessAurora
  • PrincessAurora
Are you doing online school?
anonymous
  • anonymous
I am.
PrincessAurora
  • PrincessAurora
Algebra 2 class? That's what I'm on
anonymous
  • anonymous
Algebra 1
PrincessAurora
  • PrincessAurora
IT WAS RIGHT, THANK THE HEAVENS!
anonymous
  • anonymous
I got 29,700 can't be right. Here is how I inserted the numbers. \[A=900*1^{5.5*6}=X\]
PrincessAurora
  • PrincessAurora
It told me I got it right so I guess I did get it right .
anonymous
  • anonymous
Lol, alright. As I was saying I am still trying to figure out how you got it right.
anonymous
  • anonymous
Click equation punch in the numbers and post it. maybe I can get it then.
PrincessAurora
  • PrincessAurora
FV=(900)(2.71828)^(0.055*6)
anonymous
  • anonymous
FV?
anonymous
  • anonymous
\[FV=(900)(2.71828)^{(0.055*6)}\] How did you get 2.71?
anonymous
  • anonymous
The numbers were 900/5.5/6 where did 2.71 come from?
PrincessAurora
  • PrincessAurora
FV=future value PV=present value r= annual rate of interest (in decimal not percent) t=time in years e=constant, 2.71828
anonymous
  • anonymous
Ah
PrincessAurora
  • PrincessAurora
\[FV=(PV)*(e)^{r*t}\]
PrincessAurora
  • PrincessAurora
r*t are in one parenthesis
anonymous
  • anonymous
So, what is the equation on acquiring the constant.
anonymous
  • anonymous
David, you made a slight mistake. The interest is 5.5% but as a decimal, that is 0.055 not 5.5. This means that for ever year the interest is added, the principal increases by a factor of 1.055. $900 over 6 years would be \[$900\times1.055^6=$1240.96\]

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