Betty puts 500.00 into an account to use for school expenses. The account earns 11% interest, compounded continuously. How much will be in the account after 6 years?

Solution

Solution

Amount : 967.4

Solution steps

Translate the problem into an equation:

A = 500 e^{0.11 \cdot 6}

500 e^{0.11 \cdot 6} = 967.39616 \dots

Round to the nearest hundredth:

967.4

Amount : 967.4

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