Question

PLEASE HELP Suppose you invest $8600 in an account offering 7.2% interest compounded continuously. How much is in the account after 4 years?

Answer 1

Answer:

11,357.3652

Step-by-step explanation:

This is an exponential growth equation. So fo course you'll need to make the equation first. $f(x)=a(b^{x} )$

"a" would be the initial value

"b" would be the growth factor

"x" would be time so in this case # of years

In this problem 8600 would be your initial value and x would be 4.

They gave you the growth rate which is 7.2% so your going to have to find the growth factor from the growth rate.

To do this you convert the percentage into a decimal then add 1 which represents 100%.

You will end up with 1.072 so this is your growth rate.

Insert all the values into their corresponding 'letters' if you will, and you get the equation $f(x)=8600(1.072^{4} )$

Then you solve.