We want to find the amount in a continuously compounded account for the given conditions.
To do so, we will start by recalling the formula for .
In this formula,
represents the amount in the account at time
represents the initial value of the account or the
is the annual interest rate, and
is the time in years. Let's substitute the given values into the formula. Note that
should be expressed as a decimal, so
The amount after
years under the given conditions is approximately