Question

If $1,120 is invested at an interest rate of 15% per year and is compounded contonuously, how much will the investment be worth in 7 years? Use the continuous compound interest formula: A=Pr^rt.​

Answer 1

Answer:3,200.57

Step-by-step explanation:

Answer 2

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  

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