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Word ProblemHere is a word problem. Matt places $1200 in an investment account earning...

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moocow554 | Student, Undergraduate | (Level 1) Valedictorian

Posted February 4, 2013 at 9:22 PM via

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Word Problem

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?


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litteacher8 | Middle School Teacher | (Level 1) Distinguished Educator

Posted February 5, 2013 at 7:11 PM (Answer #1)

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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.

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