Question

Isaac invested $1,800 in an account paying an interest rate of 4. 7% compounded

continuously. Assuming no deposits or withdrawals are made, how much money, to

the nearest hundred dollars, would be in the account after 15 years?

Answer 1

If no deposits and withdrawals are made then the amount that will be in the account after 15 years is  $3642.84   .

In the question ,

it is given that ,

the amount invested is $1800 ,

the rate of interest = 4.7% = 0.047

time required is = 15 years

the continuous compounding formula is

y = P×$e^{r \times t}$

y = 1800*($e^{0.047 \times 15}$)

y = 1800*$e^{0.705}$

Simplifying further , we get

y = 1800*2.0238

y = 3642.84

Therefore , If no deposits and withdrawals are made then the amount that will be in the account after 15 years is  $3642.84   .

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