Ingrid deposits 10,000 in an IRA. What will be the value of her investment in 6 years if the investment is earning 3.2% per year and is compounded continuously? Round to the nearest cent.

Solución

Ingrid deposits 10, 000 in an IRA. What will be the value of her investment in 6 years if the investment is earning 3.2% per year and is compounded continuously? Round to the nearest cent.

Solución

Amount : 12116.71

Pasos de solución

Translate the problem into an equation:

A = 10000 e^{0.032 \cdot 6}

10000 e^{0.032 \cdot 6} = 12116.70516 \dots

Round to the nearest hundredth:

12116.71

Amount : 12116.71

Ejemplos populares

Josiah invested 96,000 in an account paying an interest rate of 3.5% compounded continuously. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach 153,400?Five times a number is the same as the difference of four times the number and eight. Find the number two numbers have a sum of 6, what are the two numbers if one number is 2 less than the other number a number is at least 22 Presley wants to buy a new scooter, which is priced at 28,500. She goes to her neighborhood bank to apply for a simple interest loan. The bank offers her the loan with all of the money at a 6.2% interest rate p.a. over a 5 year period. What is the total price she pays for the scooter?