Arianna invests 5800 in a new savings account which earns 5.0% annual interest, compounded continuously. What will be the value of her investment after 4 years? Round to the nearest cent.

Solution

Solution

Amount : 7084.14

Solution steps

Translate the problem into an equation:

A = 5800 e^{0.05 \cdot 4}

5800 e^{0.05 \cdot 4} = 7084.13599 \dots

Round to the nearest hundredth:

7084.14

Amount : 7084.14

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