Abigail invested 29,000 in an account paying an interest rate of 2.1% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 8 years?

Solution

Abigail invested 29, 000 in an account paying an interest rate of 2.1% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 8 years?

Solution

Amount : 34305.16

Solution steps

Translate the problem into an equation:

A = 29000 e^{0.021 \cdot 8}

29000 e^{0.021 \cdot 8} = 34305.16170 \dots

Round to the nearest hundredth:

34305.16

Amount : 34305.16

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