Question

Calculate the balance of your account after 15 years. Round your answer to the nearest hundredth.

Answer 1

Answer:

$13,054.13

Step-by-step explanation:

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

$A = Pe^{rt}$

A = total

P = principal amount

r = interest rate (decimal)

t = time (years)

First, lets change 7.25% into a decimal:

7.25% -> $\frac{7.25}{100}$ -> 0.0725

Now, plug the values into the equation:

$A=4,400e^{0.0725(15)}$

$A=13,054.13$

Your balance will be $13,054.13