Math Problem Statement

If $2,000 is invested for t years at 4% compounded continuously, the total amount is given by A(t) = 2000e.04t

Find A(10)

Solution

The total amount after 10 years, A(10)A(10), is approximately $2983.65.

Would you like more details or have any questions?

Here are 5 related questions you might want to explore:

  1. What is the value of A(t)A(t) after 15 years?
  2. How does the formula change for different interest rates?
  3. What would the amount be if the initial investment was $3,000 instead?
  4. How do we calculate the amount for discrete compounding instead of continuous compounding?
  5. What is the time tt required for the investment to double?

Tip: Continuous compounding uses the formula A=PertA = P e^{rt}, where PP is the principal, rr is the rate, and tt is the time.

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Math Problem Analysis

Mathematical Concepts

Exponential Growth
Continuous Compound Interest
Logarithmic Functions

Formulas

A = Pe^(rt)

Theorems

Exponential Growth Theorem
Continuous Compounding Formula

Suitable Grade Level

Grades 10-12