If $125 is invested at an interest rate of 18% per year and is compounded continuously, how much will the investment be worth in

Question

3 years ago

5

2 years? Use the continuous compound interest formula A=Pe^rt

2 answers:

Katen [24] · Answer 1 · 2021-12-06T07:34:46+03:00

Answer: The investment be worth $ 174.05 in 2 years .

Step-by-step explanation:

Given : The principal amount invested : A= $125

Interest rate : r = 18% =0.18 [ Percent convert into decimal if we divide it by 100]

Time : t = 2 years

The formula to find the accumulated amount if compounded continuously :-

$A=Pe^rt\\\\=(125)(1+0.18)^{2}\\\\= 125 (1.18)^2\\\\ = 125 (1.3924)\\\\=174.05$

Hence, the investment be worth $ 174.05 in 2 years .

goldfiish [28.3K] · Answer 2 · 2021-12-06T06:22:27+03:00

3 0

Answer:

$179.17

Step-by-step explanation:

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