Question 687902: I need help figuring out this problem, If you invest $8,000 in an account paying 5.9% interest compound continuously, how much money will be in the account at the end of 7 years? I know you have to take $8,000 and x's it by 5.9%. Then I wasn't for sure if you X's that by how many days are in the year and then times that by 7 and then add that total to the $8000 to get your answer or what. Please help
Answer by MathTherapy(10557)   (Show Source):
You can put this solution on YOUR website!
I need help figuring out this problem, If you invest $8,000 in an account paying 5.9% interest compound continuously, how much money will be in the account at the end of 7 years? I know you have to take $8,000 and x's it by 5.9%. Then I wasn't for sure if you X's that by how many days are in the year and then times that by 7 and then add that total to the $8000 to get your answer or what. Please help
You need to use the formula for continuous compounding:  , where A is the accumulated amount in the account after 7 years, P = 8,000, e = approx. 2.7182818, r (rate) = .059, and t (time) = 7
When you calculate this, you should get: A = $
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