Question

A person places $82100 in an investment account earning an annual rate of 4.3%, 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 2 years.
WILL GIVE BRAINLY IF CORRECT!!


1

Answer 1

Answer:

I was taught compound interest this way hopefully it helps.

100 + interest rate / 100 = multiplier

100 + 4.3 = 104.3. 104.3/100 = 1.043

Amount X multiplier to the power of time

82100 X 1.043^2 = 89312.4029

as it is a monetary unit round to 2dp

$89312.40