Answer: 6529.26
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Work Shown:
[tex]A = P*e^{rt}\\\\A = 4000*e^{0.07*7}\\\\A \approx 6529.26487982264\\\\A \approx 6529.26[/tex]
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Explanation:
- P = deposit amount = 4000 dollars
- e = special constant equal to roughly 2.718...
- r = annual interest rate in decimal form = 0.07
- t = number of years = 7
Let your calculator handle the constant 'e's value, rather than typing in the numbers 2.718... so you can get the most accuracy possible. It's like how many calculators have a [tex]\pi[/tex] button for similar reasoning. If your calculator doesn't have an 'e' button, then this should be sufficient
e = 2.71828182846
By the way, it's a bit odd how your teacher didn't require you to round to the nearest cent. Something like 6423.12590591 should round to 6423.13
