Math word problem help?

Mathematics
Tutor: None Selected Time limit: 1 Day

You invest $500 in an account that pays 3% interest compounded continuously, modeled by the formula A = Pert. How much, to the nearest dollar, is in the account after 10 years?

May 22nd, 2015

The formula for annual compound interest is A = P (1 + r/n) ^ nt:

Where:

A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested 

P=500

r=3

t=10

n=12

A=500(1+0.03/12)^(12*10)

A=674.677

=674.7 dollars


May 22nd, 2015

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