Question

Gabby opened a savings account and deposited $800.00 as principal. The
account earns 13% interest, compounded continuously. What is the
balance after 1 year?
Use the formula A = pe", 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.
$

Answer 1

Answer:

Use the formula A = p x e^(rate x year), we have:

A = 800 x 2.71828^[(13/100) x 1] = 991.06 = ~911.1 dollar

Hope this helps!

:)