Question

you have $15,000 to invest for 5 years at 5.5% annual interest rate that is compounded continuously. how much money will you have at the end of 5 years?

Answer 1

Answer:

$19,747.96

Step-by-step explanation:

You are going to want to use the continuous compound interest formula, which is shown below:

$A = Pe^{rt}$

A = total

P = principal amount

r = interest rate (decimal)

t = time (years)

First, lets change 5.5% into a decimal:

5.5% -> $\frac{5.5}{100}$ -> 0.055

Next, plug in the values into the equation:

$A=15,000e^{0.055(5)}$

$A=19,747.96$

After 5 years, you will have $19,747.96