Katie deposited 2,000 into a new savings account that paid interest at an annual rate of 3%, compounded continuously. If there were no other transactions, approximately how much money was in Katie’s account 6 years after she made the deposit?

Solution

Katie deposited 2, 000 into a new savings account that paid interest at an annual rate of 3%, compounded continuously. If there were no other transactions, approximately how much money was in Katie’s account 6 years after she made the deposit?

Solution

Amount : 2394.43

Solution steps

Translate the problem into an equation:

A = 2000 e^{0.03 \cdot 6}

2000 e^{0.03 \cdot 6} = 2394.43472 \dots

Round to the nearest hundredth:

2394.43

Amount : 2394.43

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