Here is a word problem.
Matt places $1200 in an investment account earning an annual rate of 6.5%, compounded continuously. Using the formula V=Pe^rt, where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural Logarithm, and r is the rate of intrest, determine the amount of money, to the nearest cent, that Matt will have in the account after 10 years.
Can you please show step by step?
1 Answer | Add Yours
I no longer have a calculator that can do the e function. However, you can use your calcultator. Multiple 1200 by e to the power of (.065 x 10). That's 1200e^.65. Whatever number you get will be the amount he has in 10 years.
We’ve answered 288,596 questions. We can answer yours, too.Ask a question