Eduardo invests 8,936 in a savings account with a fixed ammual interest rate of 3% compounded continuously . What will the account balance be after 6 years?

Question

Answer 1

To solve this problem, we need to use the formula for continuous compounding interest:

Where:-

is the final amount (account balance)-

is the principal amount (initial investment)-

is the annual interest rate (as a decimal)-

is the time in years-

is the base of the natural logarithm (approximately 2.71828)Given:-

-

yearsNow, plug these values into the formula:

First, calculate the exponent:

Next, calculate

:

Now, multiply this by the principal amount:

So, the account balance after 6 years will be approximately $\

.

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