Question

Question
Terry has an investment account which
compounds interest continuously at a rate of
1.4%. He puts $1600 in the account initially. After
3 years, how much money is in the account?
Round to the nearest dollar.

Answer 1

Answer:

1800 dollars

Step-by-step explanation:

We can set up an equation here to represent the exponential growth in Terry's bank account.

$y = 1600(1.04)^x$

We can plug in 3 for x since x is the # of years the account is receiving compound interest on.

$y = 1600(1.04)^3$

$1.04^3 = 1.124864\\1.124864*1600= 1800$