Math Problem Statement

A person places $62700 in an investment account earning an annual rate of 2.6%, compounded continuously. Using the formula V, equals, P, e, start superscript, r, t, end superscriptV=Pe^{rt} $$$$ , where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural logarithm, and r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 18 years.

Solution

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Math Problem Analysis

Mathematical Concepts

Continuous Compounding
Exponential Growth

Formulas

Continuous compounding formula V = P * e^(rt)

Theorems

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Suitable Grade Level

Advanced High School or College Level