SOLUTION: Matt places $1,200 in an investment account
earning an annual rate of 6.5%, compounded
continuously. Using the formula V = Pert, where V
is the value of the account in t years,
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Question 265171: Matt places $1,200 in an investment account
earning an annual rate of 6.5%, compounded
continuously. Using the formula V = Pert, where V
is the value of the account in t years, P is the
principal initially invested, e is the base of a natural
logarithm, and r is the rate of interest, determine
the amount of money, to the nearest cent, that Matt
will have in the account after 10 years.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Matt places $1,200 in an investment account
earning an annual rate of 6.5%, compounded
continuously. Using the formula V = Pert, where V
is the value of the account in t years, P is the
principal initially invested, e is the base of a natural
logarithm, and r is the rate of interest, determine
the amount of money, to the nearest cent, that Matt
will have in the account after 10 years.
----------------
V(10) = 1200*e^(0.065*10)
V(10) = $2298.65
=======================
cheers,
Stan H.
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