Luke invested a principal amount of 592.00, with 3% that compounds continuously.It has been accruing interest for 5 years.What total value does Bob now have?

Solution

Solution

Amount : 687.81

Solution steps

Translate the problem into an equation:

A = 592 e^{0.03 \cdot 5}

592 e^{0.03 \cdot 5} = 687.80587 \dots

Round to the nearest hundredth:

687.81

Amount : 687.81

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