You invest $3,200 in an account that pays an interest rate of 8.5%, compounded continuously.

Calculate the balance of your account after 6 years. Round your answer to the nearest hundredth.

the balance is $5328.95

Step-by-step explanation:

The formula for continuously compounded interest is

A = P x e (r x t)

Where

A represents the future value of the investment after t years.

P represents the present value or initial amount invested

r represents the interest rate

t represents the time in years for which the investment was made.

e is the mathematical constant approximated as 2.7183.

From the information given,

P = 3200

r = 8.5% = 8.5/100 = 0.085

t = 6 years

Therefore,

A = 3200 x 2.7183^(0.085 x 6)

A = 3200 x 2.7183^(0.51)

A = $5328.95 to the nearest hundredth