Question

Jason invests $8,264 in an account that earns an annual interest rate of 4%. What will be the balance of the account in 18 years if the interest is compounded continuously?

Answer 1

$\text{Use the growth formula:}\,A=P(1+r)^t\\\\\text{Plug in your values}}\\\\A=8,264(1+0.04)^18\\\\\text{Solve:}\\\\A=8,264(1+0.04)^18\\\\A=8,264(1.04)^18\\\\A=8,264(2.0258)\\\\\boxed{\ 16,741.35}$

$^*\text{note: answer is rounded to the nearest hundredths place}$