Penelope invested 32,000 in an account paying an interest rate of 7% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 14 years?

Solução

P e n e l o p e in v es t e d 32, 000 in an a cco u n t p a y in g an in t eres t r a t e o f 7% co m p o u n d e d co n t in u o u s l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w m u c h m o n ey, t o t h e n e a res t d o ll a r, w o u l d b e in t h e a cco u n t a f t er 14 ye a rs ?

Amount : 85262.6

Passos da solução

Translate the problem into an equation:

A = 32000 e^{0.07 \cdot 14}

32000 e^{0.07 \cdot 14} = 85262.59974 \dots

Round to the nearest hundredth:

85262.6

Amount : 85262.6