Marian invests 2,874.65 in a savings account with a fixed annual interest rate of 1.88 % compounded continuously. What will the account balance be after 2 years?

Solution

Marian invests 2, 874.65 in a savings account with a fixed annual interest rate of 1.88 % compounded continuously. What will the account balance be after 2 years?

Solution

Amount : 2984.79

Solution steps

Translate the problem into an equation:

A = 2874.65 e^{0.0188 \cdot 2}

2874.65 e^{0.0188 \cdot 2} = 2984.79458 \dots

Round to the nearest hundredth:

2984.79

Amount : 2984.79

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