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?

Answer 1

$~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \ 1600\\ r=rate\to 1.4\%\to \frac{1.4}{100}\dotfill &0.014\\ t=years\dotfill &3 \end{cases} \\\\\\ A=1600e^{0.014\cdot 3} \implies A \approx 1668.63$