Sarah invested $2,500 in an account paying an interest rate of 2.1% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 14 years?

Step-by-step explanation:

This problem is based on compound interest, and the expression for the compound interest is given as

Given Data

A=final amount  =  ?

P=initial principal balance  = $2,500

r=interest rate = 2.1%= 0.021

t=number of time periods elapsed= 14 years

Substituting our data into the compound interest formula we can solve for the final amount

Hence to the nearest hundred we have the account balance has $3,000