Question 1193105: How much money will there be in an account at the end of 8 years if $9000 is deposited at a 5.5% annual rate that is compounded continuously? (Assume no withdrawals are made.)
Answer by ikleyn(52908)   (Show Source):
You can put this solution on YOUR website! .
How much money will there be in an account at the end of 8 years if $9000
is deposited at a 5.5% annual rate that is compounded continuously?
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An account which compounds interest continuously, works according the formula
FV =  ,
where FV is a Future value, A is the original deposit value, r is the nominal interest, t is the time, in years;
e is the base of natural logarithme (the Euler number, e = 2.71828...)
In your problem, A = $9000, r = 0.055, t = 8 years. The future value is
FV =  =  = 13974.36.
ANSWER. $13974.36.
Solved.
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To see many other similar solved problems on continuously compounded accounts, see the lesson
- Problems on continuously compound accounts
in this site.
After reading this lesson, you will tackle such problems on your own without asking for help from outside.
Also, you have this free of charge online textbook in ALGEBRA-I in this site
- ALGEBRA-I - YOUR ONLINE TEXTBOOK.
The referred lesson is the part of this online textbook under the topic "Logarithms".
Save the link to this online textbook together with its description
Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson
to your archive and use it when it is needed.
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