CCGPS AA 4.3.2 Example 1
- Author:
- Walch Education
Cheyenne deposited $200 in a bank account earning continuously compounded interest. After 10 years, she closed the account and withdrew the entire balance, which totaled $364.42. What was her annual interest rate? Rounded to the nearest dollar, how much would Cheyenne have received if she had left the money in the account for 15 years? 20 years? Use the continuously compounded interest formula, , where is the ending amount, is the principal or initial amount, is a constant, is the annual interest rate expressed as a decimal, and is the time in years.