### Home > INT3 > Chapter 10 > Lesson 10.3.3 > Problem 10-190

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? Homework Help ✎

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

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

*A* = *Pe ^{rt}*

A = 800

*e*

^{(.03)(2)}

*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% or .03

*t*= 2