An initial amount of \$3700 is invested in an account at an interest rate of 6.5% per year, compounded continuously. Assuming that no withdrawals are made, find the amount in the account after two years.Do not round any intermediate computations, and round your answer to the nearest cent.

Solution

An initial amount of $3700 is invested in an account at an interest rate of 6.5% per year, compounded continuously. Assuming that no withdrawals are made, find the amount in the account after two years.Do not round any intermediate computations, and round your answer to the nearest cent.

Solution

Amount : 4213.67

Solution steps

Translate the problem into an equation:

A = 3700 e^{0.065 \cdot 2}

3700 e^{0.065 \cdot 2} = 4213.66501 \dots

Round to the nearest hundredth:

4213.67

Amount : 4213.67

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