Arianna invests 5600 in a new savings account which earns 5.3% annual interest, compounded continuously. What will be the value of her investment after 9 years? Round to the nearest cent.

Solution

Solution

Amount : 9022.91

Solution steps

Translate the problem into an equation:

A = 5600 e^{0.053 \cdot 9}

5600 e^{0.053 \cdot 9} = 9022.90728 \dots

Round to the nearest hundredth:

9022.91

Amount : 9022.91

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