A person places $96300 in an investment account earning an annual rate of 2.8%, compounded continuously. Using the formula V=PertV = Pe^{rt} V=Pe rt , where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural logarithm, and r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 7 years.
Substituting our given numbers in where P = 96,300, r = 0.028, and t = 7, we get:
V = 96,300 * e^(0.028 * 7)
V = 96,300 * e^0.196
V = 96,300 * 1.21652690533
V = $117,151.54
Substituting our given numbers in where P = 96,300, r = 0.028, and t = 7, we get:
V = 96,300 * e^(0.028 * 7)
V = 96,300 * e^0.196
V = 96,300 * 1.21652690533
V = $117,151.54