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Alisiya [41]
3 years ago
11

You invests $1,400 in an account that pays an interest rate of 5.5%,combounded continoulsy.

Mathematics
1 answer:
Mrrafil [7]3 years ago
8 0
Formula for compounding continuously is:

A = Pe^(RT)

A = Amount, P = Principal, e = constant ≈ 2.71828..., R = Rate per year,

T = Time.

A = ?, P = $1400, R = 5.5% = 5.5/100 = 0.055, T = 6 years.

 A = Pe^(RT)

A = 1400*(2.71828)^(0.055*6)        use a calculator.

A ≈ 1947.35

Amount or balance is  ≈ $1947.35

I hope this helps.
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