SOLUTION: This is a story problem. It reads, "you deposit 2500 dollars in an account that pays 3.5% annual interest compounded continuously. What is the balance after eight years?

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Question 739058: This is a story problem. It reads, "you deposit 2500 dollars in an account that pays 3.5% annual interest compounded continuously. What is the balance after eight years?
Answer by lwsshak3(11628) About Me  (Show Source):
You can put this solution on YOUR website!
This is a story problem. It reads, "you deposit 2500 dollars in an account that pays 3.5% annual interest compounded continuously. What is the balance after eight years?
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Formula for continuous compounding:
A=Pe^rt, P=initial deposit, r=interest rate, t=years, A=amt after t years
For given problem:
P=2500
r=.035
t=8
A=2500*e^(.035*8)≈3308
Balance after eight years=$3308