Question

Find the amount in a continuously compounded account for the following condition. ​Principal, ​$​4000; Annual interest​ rate, 5.7​%; ​time, 3 years

Answer 1

Answer:  4745.96 dollars

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Explanation:

We have this given info

• P = 4000 = principal
• r = 0.057 = annual interest rate in decimal form
• t = 3 = number of years

Use this to plug into the formula below

$A = Pe^{r*t}\\\\A = 4000*e^{0.057*3}\\\\A \approx 4,745.96299608713\\\\A \approx 4,745.96$

You'll need your calculator, and the calculator needs the "e" button.

The "e" refers to the special constant 2.718... which is similar to pi = 3.14...