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Using the continuously compounding formula, what would the be the balance if you invest $5500 at a rate of 8% compounded continuously for 6 years?

Respuesta :

The formula is A = Pe^(rt)where A = amount in the account after a specified period of timeP = principlee = a constant value (similar to using pi in a formula)r = rate (change to a decimal)t = time (in years unless otherwise specified)
A = 5500e^(.08*6)A = $8888.41Always round money to two decimal places unless told otherwise.

A = Pe^(rt) becomes A = $5500e^(0.08*6) = $8888.41.