Faith invested 1,100 in an account paying an interest rate of 5.1% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 18 years?

Soluzione

F ai t h in v es t e d 1, 100 in an a cco u n t p a y in g an in t eres t r a t e o f 5.1% co m p o u n d e d co n t in u o u s l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w m u c h m o n ey, t o t h e n e a res t t e n d o ll a rs, w o u l d b e in t h e a cco u n t a f t er 18 ye a rs ?

Amount : 2754.7

Fasi della soluzione

Translate the problem into an equation:

A = 1100 e^{0.051 \cdot 18}

1100 e^{0.051 \cdot 18} = 2754.70450 \dots

Arrotondare all' hundredth più vicino:

2754.7

Amount : 2754.7