Answer:
$1251.87
Step-by-step explanation:
You invest $900 in an account that pays an interest rate 5.5%, compounded continuously. Calculate the balance of your account after 6 years.
In this question it is given that interest 5.5% is compounded continuously, it means your principal amount is constantly earning interest. We use the formula :
[tex]A = Pe^{rt}[/tex]
Where A = Amount
P = Principal amount ($900)
e = Mathematical constant e
r = rate of interest 5.5% ( 0.055)
t = Time in years (6)
Now we put the values
[tex]A=900(e)^{(0.055)(6)}[/tex]
[tex]A=900(e)^{0.33}[/tex]
[tex]A=900(2.718282^{0.33} )[/tex]
A = 900 × 1.390968
A = 1251.871316 rounded to $1251.87
The balance of your account after 6 years would be $1251.87.
