A person places $230 in an investment account earning an annual rate of 6.8%, compounded continuousl

Discussion in 'Calculator Requests' started by math_celebrity, Feb 17, 2017.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    A person places $230 in an investment account earning an annual rate of 6.8%, compounded continuously. Using the formula V = Pe^{rt}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 20 years

    Using our continuous compounding calculator, we get:
    V = 896.12
     

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