An initial amount of 3300 is invested in an account at an interest rate of 5% per year, compounded continuously. Assuming that no withdrawals are made, find the amount in the account after six years.

Solution

Solution

Amount : 4454.53

Solution steps

Translate the problem into an equation:

A = 3300 e^{0.05 \cdot 6}

3300 e^{0.05 \cdot 6} = 4454.53406 \dots

Round to the nearest hundredth:

4454.53

Amount : 4454.53

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