Mathematics: Aaron invested $570 in an account paying an interest rate of 7% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 8 years?

If he gets 10% of 2000 dollars annually, then he gets 200 a year, hence it would be solved like this 2000 + (200x38) Which equals too $9600...

Aaron invested $570 in an account paying an interest

kalebbenton15

18.03.2022

The amount of money that would be in the account after 8 years is approximately $998

Step-by-step explanation:

The given parameters for the compound interest investment are;

The amount Aaron invested = $570

The interest rate of the investment = 7%

The mode of compounding of the interest = Continuously

The number of years the amount is invested = 8 years

For a compounded continuously interest rate, we have;

$A = P \cdot e^{r \cdot t}$

Where;

A = The future value =The amount realized from the investment after the time of investment

P = The initial value = The principal amount invested

e = Euler's number = Mathematical constant

r = The interest rate = 7%

t = The time of investment = 8 years

Therefore, by substituting the known values, we have;

$A = 570 \times e^{0.07 \times 8} \approx 997.883325$

The amount of money that would be in the account after 8 years to the nearest dollar = The future value of the investment = A ≈ 998

The amount of money that would be in the account after 8 years to the nearest dollar ≈ $998.

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