If you invest ST700 in an account at an annual interest rate

If you invest ST700 in an account at an annual interest rate of 6% con mpounded continuously, fin the balance ofthe account a r te specified tane Round your answers to two deca na pla es (a) 6 months: (b) 1 year: Subt Ans Tries 0/3 (c) 5 years:$

Solution

We have to use

A= p e^rt

a. A=7700 e^0.06*(1/2) = $7934.50

b. A=7700 e^.06*1=$8176.14

c. A=7700 e^.06*5 = $10393.91