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Simora [160]
3 years ago
9

You invest $500 in an account that pays 6% interest compounded continuously. How

Mathematics
1 answer:
ratelena [41]3 years ago
3 0
<h3>Answer:  716.66 dollars</h3>

=====================================================

Explanation:

We'll apply this formula

A = P*e^(r*t)

where,

  • A = account balance after t years
  • P = initial deposit, aka principal
  • e = special constant roughly equal to 2.718 but it goes on forever without a pattern; it's better to let the calculator handle this value rather than type the decimal digits in.
  • r = annual interest rate in decimal form
  • t = number of years

In this case, we have

  • P = 500
  • r = 0.06
  • t = 6

Again we won't type "2.718..." for 'e', and we'll just type it into the calculator as shown below. That way the calculator can handle the digits instead.

So...

A = P*e^(r*t)

A = 500*e^(0.06*6)

A = 716.66470728026

A = 716.66 dollars is the final answer

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