Callie invests 4,000 into an account at a 3% interest rate. The account compounds interest continuously.How much will Callie have in the account after 10 years if she leaves the account untouched?

Solution

Callie invests 4, 000 into an account at a 3% interest rate. The account compounds interest continuously.How much will Callie have in the account after 10 years if she leaves the account untouched?

Solution

Amount : 5375.67

Solution steps

Translate the problem into an equation:

A = 4000 (1 + \frac{0.03}{1})^{1 \cdot 10}

4000 (1 + \frac{0.03}{1})^{1 \cdot 10} = 5375.66551 \dots

Round to the nearest hundredth:

5375.67

Amount : 5375.67

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