Aaron invested 7,500 in an account paying an interest rate of 1.5% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 8 years?

Solution

Aaron invested 7, 500 in an account paying an interest rate of 1.5% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 8 years?

Solution

Amount : 8456.23

Solution steps

Translate the problem into an equation:

A = 7500 e^{0.015 \cdot 8}

7500 e^{0.015 \cdot 8} = 8456.22638 \dots

Round to the nearest hundredth:

8456.23

Amount : 8456.23

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