1. **Problem statement:** Mary deposited 980 at 7 percent interest compounded continuously. We want to find how much money she has at the end of 9 years.
2. **Formula used:** The formula for continuous compounding is $$A_t = Pe^{rt}$$ where:
- $A_t$ is the amount after time $t$
- $P$ is the principal (initial amount)
- $r$ is the annual interest rate (as a decimal)
- $t$ is the time in years
3. **Given values:**
- $P = 980$
- $r = 0.07$
- $t = 9$
4. **Substitute values into the formula:**
$$A_9 = 980 e^{0.07 \times 9}$$
5. **Calculate the exponent:**
$$0.07 \times 9 = 0.63$$
6. **Rewrite:**
$$A_9 = 980 e^{0.63}$$
7. **Evaluate $e^{0.63}$ using a calculator or approximation:**
$$e^{0.63} \approx 1.877$$
8. **Multiply:**
$$A_9 = 980 \times 1.877$$
9. **Calculate the product:**
$$A_9 \approx 1839.46$$
10. **Final answer:** Mary will have approximately **1839.46** at the end of 9 years with continuous compounding.
Continuous Interest 57Aefa
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