Ernest and Janet deposit 7,000.00 into a savings account which earns 12% 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

Ernest and Janet deposit 7, 000.00 into a savings account which earns 12% 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

Amount : 10033.31

Solution steps

Translate the problem into an equation:

A = 7000 e^{0.12 \cdot 3}

7000 e^{0.12 \cdot 3} = 10033.30590 \dots

Round to the nearest hundredth:

10033.31

Amount : 10033.31

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