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Francesca opened a savings account and deposited 300.00. The account earns 4% interest, compounded continuously. If she wants to use the money to buy a new bicycle in 1 year, how much will she be able to spend on the bike?

Solution

Solution

Amount : 312.24

Solution steps

Translate the problem into an equation:

A = 300 e^{0.04 \cdot 1}

300 e^{0.04 \cdot 1} = 312.24323 \dots

Round to the nearest hundredth:

312.24

Amount : 312.24

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