Question

Melanie invested $5,500 in an account paying an interest rate of 6.9% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 11 years?

Answer 1

Answer:

$A=\ 11,748.76$

Step-by-step explanation:

we know that

The formula to calculate continuously compounded interest is equal to

$A=P(e)^{rt}$  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest in decimal  

t is Number of Time Periods  

e is the mathematical constant number

we have  

$t=11\ years\\ P=\ 5,500\\ r=6.9\%=6.9/100=0.069$  

substitute in the formula above

$A=5,500(e)^{0.069*11}$  

$A=5,500(e)^{0.759}$  

$A=\ 11,748.76$