Math Problem Statement

A person places $3560 in an investment account earning an annual rate of 6.3%, 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 14 years.

Solution

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Math Problem Analysis

Mathematical Concepts

Exponential Growth
Continuous Compounding
Natural Logarithm

Formulas

Continuous Compounding Formula: V = Pe^(rt)

Theorems

Exponential Growth Theorem

Suitable Grade Level

Grades 10-12