CPM Homework Help : INT3 Problem 10-190

Delaney would like to contribute to the purchase of a used car for school. She invests $$800$ into an account that pays $3\%$ interest compounded continuously. If she plans on helping pay for the car in two years, how much will she be able to contribute?

Hint:

What is the number $e$ ? If you are not sure, review the introductory paragraph for lesson 10.3.3.

More Help:

What is the formula for continuous compounding? If you are not sure, review problem 10-178.

Extra Help:

$A = Pe^{rt}$
$A = 800e^{\left(.03\right)\left(2\right)}$
$A = $849.47$

$A =$ total amount $=$ unknown amount that Delaney will be able to contribute
$P =$ is the principal (initial amount) $= $800$
$e = 2.718$
$r = 3\% \text{ or }.03$
$t = 2$