If $1,120 is invested at an interest rate of 15% per year and is compounded contonuously, how much will the investment be worth

Question

2 years ago

11

in 7 years? Use the continuous compound interest formula: A=Pr^rt.

2 answers:

frutty [35] · Answer 1 · 2022-08-07T01:14:50+03:00

4 0

Answer:3,200.57

Step-by-step explanation:

Luden [163] · Answer 2 · 2022-08-06T23:30:33+03:00

Answer:

$\$3,200.57$

Step-by-step explanation:

we know that

The formula to calculate continuously compounded interest is equal to

$A=P(e)^{rt}$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

e is the mathematical constant number

we have

$t=7\ years\\ P=\$1,120\\ r=0.15$

substitute in the formula above

$A=\$1,120(e)^{0.15*7}=\$3,200.57$