If 5,500 is invested at 9% annual interest, which is compounded continuously, what is the account balance after 10 years, assuming no additional deposits or withdrawals are made?

Solution

If 5, 500 is invested at 9% annual interest, which is compounded continuously, what is the account balance after 10 years, assuming no additional deposits or withdrawals are made?

Solution

Amount : 13527.82

Solution steps

Translate the problem into an equation:

A = 5500 e^{0.09 \cdot 10}

5500 e^{0.09 \cdot 10} = 13527.81711 \dots

Round to the nearest hundredth:

13527.82

Amount : 13527.82

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