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Jason opened a savings account and deposited $700.00 as principal. The account earns 1% interest, compounded continuously. What is the balance after 1 year? Use the formula A = Pe^rt , where A is the balance (final amount), P is the principal (starting amount), e is the base of natural logarithms (≈ 2.71828), r is the interest rate expressed as a decimal, and t is the time in years. Round your answer to the nearest cent

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Answer:

The balance after 1 is $7070.35.

Step-by-step explanation:

Compound continuous formula:

[tex]A=Pe^{rt}[/tex]

A=The final balance

P=Principal

r= interest rate.

Jason deposited $700.00 as principal for 1 year at a rate 1%, compounded continuously.

Here A=$700.00, t= 1 year, r=1%=0.01

[tex]A=7000e^{0.01 \times 1}[/tex]

   =$7070.35

The balance after 1 is $7070.35.

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