An initial amount of 3200 is invested in an account at an interest rate of 3.5% per year, compounded continuously. Assuming that no withdrawals are made, find the amount in the account after three years.

Solution

Solution

Amount : 3554.27

Solution steps

Translate the problem into an equation:

A = 3200 e^{0.035 \cdot 3}

3200 e^{0.035 \cdot 3} = 3554.27395 \dots

Round to the nearest hundredth:

3554.27

Amount : 3554.27

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