Elizabeth puts 236,000 into an account that earns 4.95% interest compounded continuously. How much will she have in her account at the end of 12.5 years?

Solution

Elizabeth puts 236, 000 into an account that earns 4.95% interest compounded continuously. How much will she have in her account at the end of 12.5 years?

Solution

Amount : 438158.98

Solution steps

Translate the problem into an equation:

A = 236000 e^{0.0495 \cdot 12.5}

236000 e^{0.0495 \cdot 12.5} = 438158.97670 \dots

Round to the nearest hundredth:

438158.98

Amount : 438158.98

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