Abigail invested $29,000 in an account paying an interest rate of 2.1% compoundedcontinuously. Assuming no deposits or withdrawals are made, how much money, to
the nearest dollar, would be in the account after 8 years?

Answers

Answer 1
Answer:

Final answer:

Abigail can find out how much money she will have after 8 years continuously compounding interest by using the formula A = P*e^(rt), where A is the final amount, P is the principal ($29,000), r is the interest rate (0.021), and t is time in years (8). Once the values are inserted into the formula, it can be solved to find the total amount.

Explanation:

The problem that Abigail is facing can be solved using the continuous compound interest formula which is A = P*e^(rt). Here, A stands for the amount of money in the account after t years, P is the principal amount (the initial amount of money), r represents the annual interest rate (expressed as a decimal), and t is time in years. In this context:

  • P = $29,000
  • r = 2.1 /100 = 0.021
  • t = 8 years

Plug in these values into the formula:

A = 29000 * e^(0.021 * 8)

When calculated this would give the total amount to the nearest dollar.

Learn more about Continuous compound interest here:

brainly.com/question/32594953

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