Question

A person places $82100 in an investment account earning an annual rate of 4.3%, compounded continuously. Using the formula V = Pe^{rt}V=Pe rt , where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural logarithm, and r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 2 years.

Answer 1

Answer:

$89,472.58

Step-by-step explanation:

P = $82100

r = 4.3% = 4.3/100 = 0.043

T = 2 years

V = P × e^rt

V = 82100 × e^(0.043 × 2)

V = 82100 × e^(0.086)

V = 82100 × 1.0898

V = 89,472.58

The interest after 2 years is $89,472.58