SOLUTION: If a bank compounds continuously, then the formula used is A=Pe^rt where e is a constant and equals approximately 2.7183. Calculate A with continuous compounding. Round your ans

Question 116887: If a bank compounds continuously, then the formula used is A=Pe^rt
where e is a constant and equals approximately 2.7183.
Calculate A with continuous compounding. Round your answer to the hundredth's place
A is the amount of the return.
P is the principal amount initially deposited.
r is the annual interest rate (expressed as a decimal).
n is the number of compound periods in one year.
t is the number of years.
Carry all calculations to six decimals on each intermediate step, then round the final answer to the nearest cent.
Suppose you deposit $4,000 for 8 years at a rate of 7%.

Answer by checkley71(8403) (Show Source): You can put this solution on YOUR website!
A=Pe^RT
A=4,000*2.7183^(.07*8)
A=4,000*2.7183^.56
A=4,000*1.750679
A=7002.72 ANSWER.
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