Question

A person places $6520 in an investment account earning an annual rate of 2.5%, compounded continuously. Using the formula V = Pe^{rt}V=Pe rt , where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural logarithm, and r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 3 years

Answer 1

Answer:

The amount of money, to the nearest cent, in the account after 3 years will be $ 7028.56

Step-by-step explanation:

The amount is given by

$V = Pe^{rt}$

Given P = $6520

r = 2.5%

t = 3 years

Substituting the given values, we get -

$V = 6520 * e^{2.5*3/100 }\\V = 6520 * 1.078\\V = 7028.56$

The amount of money, to the nearest cent, in the account after 3 years will be $ 7028.56