Question

Jasmine invests $2,658 in a retirement account with a fixed annual interest rate of 9% compounded continuously. What will the account be after 15 years

Answer 1

Answer:

$10,253.04

Step-by-step explanation:

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

$A = Pe^{rt}$

P = principal amount

r = interest rate (decimal)

t = time (years)

First, change 9% into a decimal:

9% -> $\frac{9}{100}$ -> 0.09

Next, plug the values into the equation:

$A=2,658e^{0.09(15)}$

$A=10,253.04$

The account will have $10,253.04