Rodrigo and Tina deposit 700.00 into a savings account which earns 1% interest compounded continuously. They want to use the money in the account to go on a trip in 3 years. How much will they be able to spend?

Solution

Solution

Amount : 721.32

Solution steps

Translate the problem into an equation:

A = 700 e^{0.01 \cdot 3}

700 e^{0.01 \cdot 3} = 721.31817 \dots

Round to the nearest hundredth:

721.32

Amount : 721.32

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