Question

Situation:
You invest $100 in an account that pays
an interest rate of 6.5%, compounded
continuously.
Calculate the balance of your account after 6
years. Round your answer to the nearest
hundredth.

Answer 1

$~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \ 100\\ r=rate\to 6.5\%\to \frac{6.5}{100}\dotfill &0.065\\ t=years\dotfill &6 \end{cases} \\\\\\ A=100e^{0.065\cdot 6}\implies A=100e^{0.39}\implies A\approx 147.70$

Answer 2

Step-by-step explanation:

$100(1 + \frac{6.5}{100} )^{72}$