Matthew invested 5,800 in an account paying an interest rate of 4.9% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 7 years?

Solution

Matthew invested 5, 800 in an account paying an interest rate of 4.9% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 7 years?

Solution

Amount : 8173.18

Solution steps

Translate the problem into an equation:

A = 5800 e^{0.049 \cdot 7}

5800 e^{0.049 \cdot 7} = 8173.17881 \dots

Round to the nearest hundredth:

8173.18

Amount : 8173.18

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