Alexandra opened a savings account and deposited 1,000.00 as principal. The account earns 8% interest, compounded continuously. What is the balance after 7 years?

Solution

Alexandra opened a savings account and deposited 1, 000.00 as principal. The account earns 8% interest, compounded continuously. What is the balance after 7 years?

Solution

Amount : 1750.67

Solution steps

Translate the problem into an equation:

A = 1000 e^{0.08 \cdot 7}

1000 e^{0.08 \cdot 7} = 1750.67250 \dots

Round to the nearest hundredth:

1750.67

Amount : 1750.67

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