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A person places 133 in an investment account earning an annual rate of 5.8%, compounded continuously. Using the formula V, equals, P, e, start superscript, r, t, end superscriptV=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 interest, determine the amount of money, to the nearest cent, in the account after 9 years

Solution

Solution

Amount : 224.16

Solution steps

Translate the problem into an equation:

A = 133 e^{0.058 \cdot 9}

133 e^{0.058 \cdot 9} = 224.15754 \dots

Round to the nearest hundredth:

224.16

Amount : 224.16

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