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Popular Word Problems >

Bruce puts 500.00 into an account to use for school expenses. The account earns 7% interest, compounded continuously. How much will be in the account after 5 years?

Solução

B r u ce p u t s 500.00 in t o an a cco u n t t o u se f or sc h oo l e x p e n ses . T h e a cco u n t e a r n s 7% in t eres t, co m p o u n d e d co n t in u o u s l y . Ho w m u c h w i ll b e in t h e a cco u n t a f t er 5 ye a rs ?

Solução

Amount : 709.53

Passos da solução

Translate the problem into an equation:

A = 500 e^{0.07 \cdot 5}

500 e^{0.07 \cdot 5} = 709.53377 \dots

Round to the nearest hundredth:

709.53

Amount : 709.53

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