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) About Me  (Show Source):
You can put this solution on YOUR website!
A+=+P%2Ae%5E%28r%2At%29
given:
P=+2500
r+=+.11
t+=+4
---------
A+=+2500%2Ae%5E%28.11%2A4%29
A+=+2500%2Ae%5E.44
A+=+2500%2A1.5527
A+=+3881.768
This is close to (b). You are doing something wrong with
your calculator, I think.

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 continuous compounding formula.


A=2500%2Ae%5E%280.11%2A4%29 Plug in P=2500, r=0.11 (the decimal equivalent of 11%), and t=4.


A=2500%2Ae%5E%280.44%29 Multiply 0.11 and 4 to get 0.44.


A=2500%2A1.55270721851134 Raise 'e' (which is approximately 2.71828) to the power 0.44 to get 1.55270721851134 (this value is approximate).


A=3881.76804627834 Multiply 2500 and 1.55270721851134 to get 3881.76804627834.


A=3881.77 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