SOLUTION: A savings account earns interest at an annual rate of 5%, compounded continuously. If the account begins with a value of $2000, what will its value be after 4 years?
A=Pe^rt
A=(
Algebra.Com
Question 189004This question is from textbook saxon algebra 2
: A savings account earns interest at an annual rate of 5%, compounded continuously. If the account begins with a value of $2000, what will its value be after 4 years?
A=Pe^rt
A=(2000)e^(0.05)(4)
A=?
When I type this into my calculator, I know I'm getting the wrong answer.
Can someone please help!
This question is from textbook saxon algebra 2
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
Start with the given equation.
Plug in , and
Multiply 0.05 and 4 to get 0.2
Raise "e" (which is roughly 2.718...) to the 0.2 power to get approximately 1.2214
Multiply (this is also an approximate value)
So the account will have about $2,442.80 in 4 years.
RELATED QUESTIONS
A savings account earns interest at an annual rate of 4%, compounded quarterly. If the... (answered by user_dude2008)
you deposit 1800$ in a special savings account. the account earns interest at an annual... (answered by dfrazzetto)
jaidee invests $1,966 in a savings account with a fixed annual interest rate of 2.45%... (answered by ikleyn)
a bank account earns interest compounded continuously at a rate of 6% per year. how long... (answered by stanbon)
Tyra invests $5300 in a new savings account which earns 4.5% annual interest, compounded... (answered by Boreal)
Find the future value on a savings account with a principle of $4700 at 4% simple... (answered by Theo)
A savings account with $2250 has an interest rate of 5%. If the interest is compounded... (answered by rfer)
Mary has $3,500 in a savings account earning 412% annual interest that is compounded... (answered by Fombitz)
The amount of money in an account with continuously compounded interest is given by the... (answered by ikleyn,MathTherapy)