SOLUTION: To save for a new car, Trafton invested $3,000 in a savings account that earns 1.5% interest, compounded continuously. After four years, he wants to buy a used car for $4,000. How

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: To save for a new car, Trafton invested $3,000 in a savings account that earns 1.5% interest, compounded continuously. After four years, he wants to buy a used car for $4,000. How       Log On

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Question 1128632: To save for a new car, Trafton invested $3,000 in a savings account that earns 1.5% 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.)
*I'm confused as to how to properly set up the equation in order to solve it.
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+A+=+P%2Ae%5E%28r%2At%29+
+A+=+3000%2Ae%5E%28+.015%2A4+%29+
+A+=+3000%2Ae%5E.06+
+A+=+3000%2A1.061837+
+A+=+3185.51+
+4000+-+3185.51+=+814.49+
He will need $814.49 in addition to amount in savings
check my math