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

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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