Abigail invested $29,000 in an account paying an interest rate of 2.1% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 8 years?
The formula for continuous compound interest is given by the formula:
A = P*e^(rt)
Where:
A = the final amount in the account
P = the principal amount (initial investment)
r = the annual interest rate (expressed as a decimal)
t = the time in years
e = Euler's number (approximately 2.71828)
Plugging in the given values, we have:
A = 29000*e^(0.021*8)
Using a calculator to evaluate this expression, we find:
A ≈ 33,359.12
Therefore, there would be approximately $33,359.