Suppose you deposit $1000 in an account paying 3% annual intrest, compounded continuously. Use A=Pe^rt to find the balance after 10 years
You are given the formula AND all the data to sub into that formula.
Do you have a scientific calculator??
Took me about 9 seconds to finish the calculations.
Give it a try.
No, I do not, unfortunately. Does the 0.03 go into the r?
amount = 1000 e^(.03(10))
= 1000 e^.3
= 1000 (1.349858..)
How does your teacher expect you to do these calculations?
With a calculator, I just can't afford one. Thank you very much I appreciate the help!
To find the balance after 10 years when an account pays 3% annual interest compounded continuously, we can use the formula A = Pe^rt, where:
A = the ending balance
P = the initial principal (amount deposited)
e = the mathematical constant approximately equal to 2.71828
r = the annual interest rate (in decimal form)
t = the time period (in years)
In this case, we have:
P = $1000
r = 3% = 0.03 (converted to decimal form)
t = 10 years
Substituting these values into the formula, we get:
A = 1000 * e^(0.03 * 10)
Simplifying the exponent, we have:
A = 1000 * e^0.3
Calculating e^0.3, we find:
A ≈ 1000 * 1.3498588
Multiplying the values, we get:
A ≈ 1349.86
Therefore, the balance after 10 years is approximately $1349.86.
Hence, the correct answer is option H: $1349.86.