SOLUTION: I need some help with a word problem Please. A bank compounds interest continuously. If you invest $500 at 4% at that bank for 5 years, what will your balance be? Use formula A=

Question 61863: I need some help with a word problem Please.
A bank compounds interest continuously. If you invest $500 at 4% at that bank for 5 years, what will your balance be? Use formula A= 500e^0.04t
where A is the balance in the account and t is in years.
Found 2 solutions by funmath, joyofmath:
Answer by funmath(2933) (Show Source): You can put this solution on YOUR website!
A bank compounds interest continuously. If you invest $500 at 4% at that bank for 5 years, what will your balance be? Use formula A= 500e^0.04t
where A is the balance in the account and t is in years.

A=$610.70
Happy Calculating!!!
Answer by joyofmath(189) (Show Source): You can put this solution on YOUR website!
A bank compounds interest continuously. If you invest $500 at 4% at that bank for 5 years, what will your balance be? Use formula A= 500e^0.04t
where A is the balance in the account and t is in years.

Using a calculator, with e = 2.71828, 500e^.2 = 500(2.71828)^.2 = 610.70
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