Question

Jen invested $3500 into a continuously compounded account with an interest rate of 3.1%. After 9 years, how much money is in the account? Round your answer to the nearest whole number

Answer 1

Answer:

≈$4607

Step-by-step explanation:

I will assume it's compounded yearly.

Apply the compound interest formula.

$A=P(1+\frac{r}{n})^{nt}$

A = Total

P = Initial Principle

r = Interest Rate

n = number of interest in every t period

t = number of periods

In the case,

P = 3500

r = 3.1% = 0.031

n = 1

t = 9

Hence,

$A=3500(1+\frac{0.031}{1})^{1*9}$

$A = 4606.764717......$

A ≈ 4607 (nearest whole number)