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Ugo [173]
3 years ago
10

What is the value of $750 invested into an account with an annual rate of 3.25% compounded continuously for 4 years and 3 months

?
Mathematics
1 answer:
Goshia [24]3 years ago
5 0

Answer:

$861.09

Step-by-step explanation:

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

A = Pe^{rt}

<em>A = total </em>

<em>P = principal amount </em>

<em>r = interest rate (decimal) </em>

<em>t = time (years) </em>

<em />

First, change 3.25% into its decimal form:

3.25% -> \frac{3.25}{100} -> 0.0325

Next for <em>t, </em>we can use 4.25 since 4 years and 3 months is 4.25 in its decimal form. Now lets plug in the values:

A=750e^{(0.0325)4.25}

A=861.09

Your answer is $861.09

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