\( \$ 900 \) are deposited in an account with \( 7 \% \) interest rate, compounded continuously. What is the balance after 6 years? \[ F=\$[?] \]
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To find the balance after 6 years with continuous compounding, we use the formula \( F = Pe^{rt} \), where \( P \) is the principal amount, \( r \) is the interest rate, \( t \) is the time in years, and \( e \) is the base of the natural logarithm (approximately \( 2.71828 \)). Here, \( P = 900 \), \( r = 0.07 \), and \( t = 6 \). Plugging these values in, we get: \[ F = 900 \cdot e^{0.07 \cdot 6} \] Calculating \( 0.07 \cdot 6 = 0.42 \), we find: \[ F = 900 \cdot e^{0.42} \] Now, \( e^{0.42} \approx 1.519 \): \[ F \approx 900 \cdot 1.519 \approx 1367.1 \] So, the balance after 6 years is approximately \( F = \$ 1367.10 \).