So, I have a word problem that I need to use the formula $A = Pe^{rt}$ to solve…
Suppose $2000 is invested at an interest rate 2.75% compounded continuously. What is the balance in the account after 4 years? Round answer to the nearest cent.
I know that…
$$
P = \$2000\\
R = 2.75\%\\
T = 4
$$
What I'm trying to do is calculate this using my TI-83 and I believe the way to do this is by first multiplying 2.75(4), then press the $e^x$ button, plug in my answer, then multiply it by $2000$. That's my understanding of it, but what's the actual correct way to insert this problem into my calculator?
Best Answer
As Amzoti said, I think correct eqn is $A=Pe^{rt}$
you can plot
y=2000*e^(.0275x)in a graph and use the 2nd Calc- Value commands to evaluate at $t=4$, or can use 2nd Table to check your for multiple ranges of $t$ (we just use $x$ in the ti-83).
the way you did it should be totally fine too, so long as you use the right formula.