document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1153441>Question 1153441</A>: <I><SPAN STYLE=\"word-break: break-all;\"> To save for a new car, Trafton invested $3,000 in a savings account that earns 6.5% interest, compounded continuously. After four years, he wants to buy a used car for $4,000. How much money will he need to pay in addition to what is in his savings account? (Round your answer to the nearest cent.) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #775661 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=775661\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> continuous compound formula is f = p * e ^ (r * t)<BR>\n" );
document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "e is the scientific constant of 2.718281828.....<BR>\n" );
document.write( "r is the interest rate per time period (years in this case)<BR>\n" );
document.write( "t is the number of time periods (years in this case)><BR>\n" );
document.write( "in your problem, the formula becomes:<BR>\n" );
document.write( "f = 3000 * e ^ (.065 * 4) = 3890.79026 rounded to nearest cent = 3890.79<BR>\n" );
document.write( "that's what will be in the account in 4 years.<BR>\n" );
document.write( "since the cost of the car is 4000, he will have to pay an additional 4000 - 3890.79 = 109.21.\r<BR>\n" );
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