Manny invests $100 in an account that is compounded continuously at an annual interest rate of 2%, according to the formula A=Pe^rt, where A is the amount of accrued, P is the principal, r is the rate of interest, and t is the time, in years. In 20 years, how much will Manny's investment be worth to the nearest dollar?
We are given the principal P = $100, the interest rate r = 2% = 0.02, and the time t = 20 years.
Using the formula A = Pe^(rt), we can plug in the given values to calculate the amount accrued:
A = 100*e^(0.02*20)
A = 100*e^0.4
A ≈ 100 * 1.4918
A ≈ $149.18
To the nearest dollar, Manny's investment will be worth $149.