Jeanette opened a savings account and deposited $400.00. The account earns 13% interest, compounded continuously. If she wants to use the money to buy a new bicycle in 3 years, how much will she be able to spend on the bike?
Use the formula
A
P
e
r
t
,
where
A
is the balance (final amount),
P
is the principal (starting amount), e is the base of natural logarithms (≈2.71828),
r
is the interest rate expressed as a decimal, and
t
is the time in years.
Round your answer to the nearest cent.
$
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