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Bill and Gabby deposit 2,000.00 into a savings account which earns 8% interest compounded continuously. They want to use the money in the account to go on a trip in 1 year. How much will they be able to spend?

Solution

Bill and Gabby deposit 2, 000.00 into a savings account which earns 8% interest compounded continuously. They want to use the money in the account to go on a trip in 1 year. How much will they be able to spend?

Solution

Amount : 2166.57

Solution steps

Translate the problem into an equation:

A = 2000 e^{0.08 \cdot 1}

2000 e^{0.08 \cdot 1} = 2166.57413 \dots

Round to the nearest hundredth:

2166.57

Amount : 2166.57

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