Question

using the continuously compounding formula what would the balance be if you invest $5500 at a rate of 8% compunded continuously for 6 years please show all your work.

Answer 1

$\bf \qquad \textit{Continuous Compounding Amount}\\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \ 5500\\ r=rate\to 8\%\to \frac{8}{100}\to &0.08\\ t=years\to &6 \end{cases} \\\\\\ A=5500\cdot e^{0.08\cdot 6}$

Answer 2

The formula is A = Pe^(rt)
where A = amount in the account after a specified period of time
P = principle
e = a constant value (similar to using pi in a formula)
r = rate (change to a decimal)
t = time (in years unless otherwise specified)

A = 5500e^(.08*6)
A = $8888.41
Always round money to two decimal places unless told otherwise.