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=(

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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) About Me  (Show Source):
You can put this solution on YOUR website!
A=Pe%5E%28rt%29 Start with the given equation.


A=%282000%29e%5E%28%280.05%29%284%29%29 Plug in P=2000, r=0.05 and t=4


A=2000e%5E%280.2%29 Multiply 0.05 and 4 to get 0.2


A=2000%281.2214%29 Raise "e" (which is roughly 2.718...) to the 0.2 power to get approximately 1.2214


A=2442.8 Multiply (this is also an approximate value)



So the account will have about $2,442.80 in 4 years.