Question

A person places $290 in an investment account earning an annual rate of 2.2%, 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 18 years.

Answer 1

Answer:

$430.90

Step-by-step explanation:

Given that the principal p= $290

rate r= 2.2%  2.2/100 =0.022  

time t= 18years

by applying the expression

$V = Pe^{rt}$

We have

$V = 290e^{0.022*18}\\\\V=290e^{0.396}\\\\V=290*1.48586931755\\\\V= 430.90$

Hence after 18years the money in the account will be $430.90