SOLUTION: If $2500 is invested at a rate of 11% compounded continuously, find the balance in the account after 4 years. Use the formula A=Pe^rt.
a.3795.18 b.3881.77 c.4333.13 d.18472.64
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Question 388776: If $2500 is invested at a rate of 11% compounded continuously, find the balance in the account after 4 years. Use the formula A=Pe^rt.
a.3795.18 b.3881.77 c.4333.13 d.18472.64
*the answers I'm getting do not match the answers above. please help.
Found 2 solutions by josmiceli, jim_thompson5910:
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
given:
---------
This is close to (b). You are doing something wrong with
your calculator, I think.
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
Start with the continuous compounding formula.
Plug in , (the decimal equivalent of 11%), and .
Multiply and to get .
Raise 'e' (which is approximately 2.71828) to the power to get (this value is approximate).
Multiply and to get .
Round to the nearest hundredth (ie to the nearest penny).
So the balance after 4 years is $3,881.77
So the answer is choice b)
If you need more help, email me at jim_thompson5910@hotmail.com
Also, feel free to check out my tutoring website
Jim
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