Emmett opened a savings account and deposited 400.00. The account earns 13% interest, compounded continuously. If he wants to use the money to buy a new bicycle in 1 year, how much will he be able to spend on the bike?

Solution

Solution

Amount : 455.53

Solution steps

Translate the problem into an equation:

A = 400 e^{0.13 \cdot 1}

400 e^{0.13 \cdot 1} = 455.53135 \dots

Round to the nearest hundredth:

455.53

Amount : 455.53

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