mary deposited $980 at 7 percent interest compounded continuously. how much money did she have at the end of…
mary deposited $980 at 7 percent interest compounded continuously. how much money did she have at the end of 9 years? (a_t = pe^rt)
Answer
Explanation:
Step1: Identify values
$P = 980$, $r=0.07$, $t = 9$
Step2: Substitute into formula
$A_t=980\times e^{0.07\times9}$
Step3: Calculate exponent
$0.07\times9 = 0.63$
Step4: Calculate $e^{0.63}$
Using a calculator, $e^{0.63}\approx1.8776$
Step5: Calculate $A_t$
$A_t=980\times1.8776 = 1830.048\approx1830.05$
Answer:
$1830.05$