Question

In Exercise,find the balance in the account after 10 years.

Answer 1

Answer: $ 3462.03

Step-by-step explanation:

The exponential equation for growth (compounded continuously) is given by :-

$A=Pe^{rt}$

, where P= Present value

r= growth rate  ( in decimal)

t= time

As per given , we have

P=$1900,  r = 6% =0.06  and t= 10

Substitute all the values in the above equation , we get

$A=1900e^{0.06(10)}$

$A=1900e^{0.6}$

$A=1900(1.8221188)=3462.02572\approx3462.03$  [To the nearest cent]

Hence, the balance in the account after 10 years = $ 3462.03