Question

you invest 1600 in an account that pays an intrest rate of 4.75% compounded continuously calculate the balance of your account after 7 years round ur answer to the nearest hundreth

Answer 1

If the interest is compounded continuously, the formula you use would look like this: A(t) = Pe^rt, where A(t) is the final amount, P is the initial investment, e is euler's number, r is the rate, and t is the time in years. Fill it in like this:
A(t) = 1600* e^(.0475)(7). Do the multiplication between the powers first:
A(t)= 1600*e^.3325.  Now take e to that power to get A(t)=1600(1.3944). Finish by multiplying: A(t) = $2231.12