hakim and akira deposit $600.00 into a savings account which earns 2% interest compounded continuously. they…

hakim and akira deposit $600.00 into a savings account which earns 2% interest compounded continuously. they want to use the money in the account to go on a trip in 1 year. how much will they be able to spend? use the formula $a = pe^{rt}$, where $a$ is the balance (final amount), $p$ is the principal (starting amount), $e$ is the base of natural logarithms ($\\approx2.71828$), $r$ is the interest rate expressed as a decimal, and $t$ is the time in years. round your answer to the nearest cent.

hakim and akira deposit $600.00 into a savings account which earns 2% interest compounded continuously. they want to use the money in the account to go on a trip in 1 year. how much will they be able to spend? use the formula $a = pe^{rt}$, where $a$ is the balance (final amount), $p$ is the principal (starting amount), $e$ is the base of natural logarithms ($\\approx2.71828$), $r$ is the interest rate expressed as a decimal, and $t$ is the time in years. round your answer to the nearest cent.

Answer

Explanation:

Step1: Identify values

$P = 600$, $r=0.02$, $t = 1$

Step2: Substitute into formula

$A=Pe^{rt}=600\times e^{0.02\times1}$

Step3: Calculate value

$A = 600\times e^{0.02}\approx600\times1.02020134 = 612.120804$

Step4: Round to nearest cent

$A\approx612.12$

Answer:

$612.12$