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Math Problems
Algebra 2
Continuously compounded interest: word problems
Bobby and Shelley deposit
$
800.00
\$800.00
$800.00
into a savings account which earns
6
%
6\%
6%
interest compounded continuously. They want to use the money in the account to go on a trip in
3
3
3
years. How much will they be able to spend?
\newline
Use the formula
A
=
P
e
r
t
A = Pe^{rt}
A
=
P
e
r
t
, where
A
A
A
is the balance (final amount),
P
P
P
is the principal (starting amount),
e
e
e
is the base of natural logarithms (
≈
2.71828
\approx 2.71828
≈
2.71828
),
r
r
r
is the interest rate expressed as a decimal, and
t
t
t
is the time in years.
\newline
Round your answer to the nearest cent.
\newline
$
\$
$
____
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