A person places 398 in an investment account earning an annual rate of 9.7%, compounded continuously, determine the amount of money, to the nearest cent, in the account after 7 years.

Solution

Solution

Amount : 784.82

Solution steps

Translate the problem into an equation:

A = 398 e^{0.097 \cdot 7}

398 e^{0.097 \cdot 7} = 784.81812 \dots

Round to the nearest hundredth:

784.82

Amount : 784.82

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