Question

Find the amount in a continuously compounded account for the following condition.

Answer 1

Answer:

***The balance after 4 years is ​$3738.23***

Step-by-step explanation:

The amount in a continuously compounded account is given by:

$A=Pe^{rt}$

where P=$3000 is the principal, r=5.5% is the annual interest rate and t=4 years.

We substitute these values to obtain:

$A=3000e^{.055*4}$

This will evaluate to:

$A=3738.23019$

Rounding to the nearest cent, we get: $3738.23