Problema Solution
One of the oldest banks in the United States is the Bank of America, founded in 1812. If $400 had been deposited at that time into an account that paid 5% annual interest, then 180 years later the amount would have grown to 400(1.05)180 dollars. Approximate this amount to the nearest cent.
Answer provided by our tutors
let 'T' represent the total amount
let 'p' represent the principal amount
let 'r' represent the rate of continuous growth
let 'y' represent the number of years
the equation is an exponential, represented by 'e':
T = pe^(ry)
T = 400e^(1.05*180)
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T is approximately 1.013 * 10^185
...there is no reasonable method of calculating the amount down to "the nearest cent"