Question

You invest 4,100 in an account that pays an interest rate of 7.25% ,compounded continuously. Calculate the balance of your account after 8 years round your answer to the nearest hundredth.

Answer 1

$\bf ~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \ 4100\\ r=rate\to 7.25\%\to \frac{7.25}{100}\to &0.0725\\ t=years\to &8 \end{cases} \\\\\\ A=4100e^{0.0725\cdot 8}\implies A=4100e^{0.58}\implies A\approx 7322.757566075$