Problem

Jonathan invested $930 in an account paying an interest rate of 3.1% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 11 years?

Answer

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Answer

1310

Steps

Step 1 :Given: Principal (P) = $930, Interest rate (r) = 0.031, Time (t) = 11 years

Step 2 :Use the continuous compound interest formula: A = P * e^(rt)

Step 3 :Calculate the final amount (A): A = 930 * e^(0.031 * 11)

Step 4 :Round the final amount to the nearest ten dollars: A ≈ $1310

Step 5 :1310

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