Compound interest? pls helppp!
Robert and Pam deposit $800.00 into a savings account which earns 4% interest compounded continuously. They want to use the money in the account to go on a trip in 1 year. How much will they be able to spend?
Use the formula A=Pert, where A is the balance (final amount), P is the principal (starting amount), e is the base of natural logarithms (≈2.71828), r is the interest rate expressed as a decimal, and t is the time in years.
Round your answer to the nearest cent.
Robert and Pam deposit $800.00 into a savings account which earns 4% interest compounded continuously. They want to use the money in the account to go on a trip in 1 year. How much will they be able to spend?
Use the formula A=Pert, where A is the balance (final amount), P is the principal (starting amount), e is the base of natural logarithms (≈2.71828), r is the interest rate expressed as a decimal, and t is the time in years.
Round your answer to the nearest cent.
1 Answer
Mar 16, 2018
Substitute in parts and solve
Explanation:
Where r is
T is
And e is about
The principal amount or P which is the starting amount is: