Question

Jasmine invests $2,658 in a retirement account with a fixed annual interest rate of 9% compounded continuously. What will the account balance be after 15 years?

Answer 1

Answer:

The amount  balance be after 15 years is $10253.03.        

Step-by-step explanation:

Given : Jasmine invests $2,658 in a retirement account with a fixed annual interest rate of 9% compounded continuously.

To find : What will the account balance be after 15 years?

Solution :

The formula of compounded continuously is

$A=Pe^{rt}$

Where, A is the amount

P is the principal P=$2658

r is the rate of interest r=9%=0.09

t is the time t=15 years

Substitute all the values in the formula,

$A=Pe^{rt}$

$A=2658\times e^{0.09\times15}$

$A=2658\times e^{1.35}$

$A=2658\times 3.857$

$A=10253.03$

Therefore, The amount  balance be after 15 years is $10253.03.

Answer 2

1) with this exercise you have the following  data , initial capital C =  $ 2,658 , rate of interest i= 9 % , time in years of  n = 15

2) with the formula M = C(1+i) ^n, can obtain  the account balance  M, at 15 years

M = 2,658(1+0.09)^15 = $9,681