Suppose 24,000 is deposited into an account paying 7.25% interest, which is compounded continuously.How much money will be in the account after ten years if no withdrawals or additional deposits are made?

Solution

Suppose 24, 000 is deposited into an account paying 7.25% interest, which is compounded continuously.How much money will be in the account after ten years if no withdrawals or additional deposits are made?

Solution

Amount : 49553.55

Solution steps

Translate the problem into an equation:

A = 24000 e^{0.0725 \cdot 10}

24000 e^{0.0725 \cdot 10} = 49553.54639 \dots

Round to the nearest hundredth:

49553.55

Amount : 49553.55

Popular Examples

Janelys invests money in an account paying a simple interest of 2.3% per year. If she invests 90 and no money will be added or removed from the investment, how much will she have in one year, in dollars and cents?the sum of two consecutive even integers is-6. fimd the two integers Zoe opened a savings account and deposited 445.00 as principal. The account earns 1% interest, compounded annually. What is the balance after 6 years?Kenji inherited some money from his grandfather and put it in a bank account that earns 15% interest compounded annually. After 9 years, Kenji had 1,000.00 in the bank account. How much interest did he earn?the sum of a number times 8 and 30 is at most 21