SOLUTION: I need some help with a word problem Please. A bank compounds interest continuously. If you invest $500 at 4% at that bank for 5 years, what will your balance be? Use formula A=

Algebra ->  Functions -> SOLUTION: I need some help with a word problem Please. A bank compounds interest continuously. If you invest $500 at 4% at that bank for 5 years, what will your balance be? Use formula A=      Log On


   

Question 61863: I need some help with a word problem Please.
A bank compounds interest continuously. If you invest $500 at 4% at that bank for 5 years, what will your balance be? Use formula A= 500e^0.04t
where A is the balance in the account and t is in years.
Found 2 solutions by funmath, joyofmath:
Answer by funmath(2933) About Me  (Show Source):
You can put this solution on YOUR website!
A bank compounds interest continuously. If you invest $500 at 4% at that bank for 5 years, what will your balance be? Use formula A= 500e^0.04t
where A is the balance in the account and t is in years.
A=500e%5E%280.04%285%29%29
A=500e%5E.2
highlight%28A=610.70%29
A=$610.70
Happy Calculating!!!

Answer by joyofmath(189) About Me  (Show Source):
You can put this solution on YOUR website!
A bank compounds interest continuously. If you invest $500 at 4% at that bank for 5 years, what will your balance be? Use formula A= 500e^0.04t
where A is the balance in the account and t is in years.


A+=+500e%5E%28.04%285%29%29+=+500e%5E.2


Using a calculator, with e = 2.71828, 500e^.2 = 500(2.71828)^.2 = 610.70