A person places $9680 in an investment account earning an annual rate of 5.3%, compounded continuously. Using the formula V = P e r t V=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.

General Formulas and Concepts:

Math

Euler's number e ≈ 2.718

Pre-Algebra

Order of Operations: BPEMDAS

Brackets Parenthesis Exponents Multiplication Division Addition Subtraction Left to Right

Algebra I

Continuously Compounded Interest Rate Formula:

V is value of accountP is principle initially investede is base of lnr is rate of interestt is time in years

Step-by-step explanation:

Step 1: Define

P = $9680

r = 5.3% = 0.053

t = 18 years

Step 2: Solve

Substitute in variables [Continuously Compounded Interest Rate]:            Multiply exponents:                                                                                        Evaluate exponents:                                                                                       Multiply:                                                                                                           Round:                                                                                                            

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