Question

Cooper opened a savings account and deposited $1,000.00. The account earns 9% interest, compounded continuously. If he wants to use the money to buy a new bicycle in 1 year, how much will he be able to spend on the bike?
Use the formula A=Pert, where A is the balance (final amount), P is the principal (starting amount), e is the base of natural logarithms (≈2.71828), r is the interest rate expressed as a decimal, and t is the time in years.
Round your answer to the nearest cent.

Answer 1

Step-by-step explanation:

A = P*e*r*t

P = 1,000

e = 2.71828

r = 0.09

t = 1

A = (1,000)*(2.71828)*(0.09)*(1)

A = 244.65