Skylar invested 8,900 in an account paying an interest rate of 2.6% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 11 years?

Solution

S k y l a r in v es t e d 8, 900 in an a cco u n t p a y in g an in t eres t r a t e o f 2.6% co m p o u n d e d co n t in u o u s l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w m u c h m o n ey, t o t h e n e a res t d o ll a r, w o u l d b e in t h e a cco u n t a f t er 11 ye a rs ?

Amount : 11846.72

Solution steps

Translate the problem into an equation:

A = 8900 e^{0.026 \cdot 11}

8900 e^{0.026 \cdot 11} = 11846.72285 \dots

Round to the nearest hundredth:

11846.72

Amount : 11846.72