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.
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  • Stacey Warren - Expert brainly.com
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SOLVED
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chestercat
  • chestercat
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
PrincessAurora
  • PrincessAurora
They gave me a formula but it's not working I think there's a glitch and it won't show me the rest of it I think
mathmate
  • mathmate
The formula for continuous interest problems is \(FV=PVe^{rt}\) FV=future value PV=present value r=annual rate of interest (in decimal, not percent) t=time in years e=constant, 2.71828....
PrincessAurora
  • PrincessAurora
Is the future value 6 years?

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PrincessAurora
  • PrincessAurora
Please help me set it up I'm getting confused.
PrincessAurora
  • PrincessAurora
6=(900)(2.71828)^(5.5)(6) ?
FortyTheRapper
  • FortyTheRapper
You have FV at 6, but you're looking for FV
mathmate
  • mathmate
yes, time t=6 (years) PV is the current investment FV is what you expect to get after t=6 years r=rate of interest=5.5%=0.055 in decimal
PrincessAurora
  • PrincessAurora
So, FV=(900)(2.71828)^(0.055)(6) ?
mathmate
  • mathmate
Note that interest is in decimal form 0.055 and there are parentheses between r and t, i.e. the exponent is for the product r*t. The way you interpreted the formula will have the time t multiplied (instead of exponentiated).
PrincessAurora
  • PrincessAurora
can you write it out please I keep writing it wrong?
mathmate
  • mathmate
FV=PV*e^(rt) is what you need to put on your calculator.
PrincessAurora
  • PrincessAurora
I know but you said what I set up is wrong
mathmate
  • mathmate
Read up PEMDAS to help you understand how formulas work: http://www.purplemath.com/modules/orderops.htm
mathmate
  • mathmate
You may have noticed that there are parentheses around r and t. Without the parentheses, only r will be exponentiated.
PrincessAurora
  • PrincessAurora
oh okay I see!
PrincessAurora
  • PrincessAurora
I got 1251.87
PrincessAurora
  • PrincessAurora
is that worng
FortyTheRapper
  • FortyTheRapper
Nope, I got the same thing. Good one
PrincessAurora
  • PrincessAurora
I GOT IT RIGHT Y'ALL THANK THE HEAVENS
FortyTheRapper
  • FortyTheRapper
Yay!
PrincessAurora
  • PrincessAurora
@FortyTheRapper Thanks for your help :)
FortyTheRapper
  • FortyTheRapper
Thanks but I give all credit to @mathmale on this one

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