SOLUTION: You invest $4,200 in an account that pays an interest rate of 6.5%, compounded continously. Calculate the balance of your account after 10 years. Round your answer to the nearest h

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Question 972612: You invest $4,200 in an account that pays an interest rate of 6.5%, compounded continously. Calculate the balance of your account after 10 years. Round your answer to the nearest hundredth.
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
A=4200*e^(.065*10) Pexp ^rt, and r is a decimal
A=4200*e^.65
A=$8045.27
This is almost doubling, and the rule of 72 would predict doubling in 11 years, so the answer makes sense.