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hram777 [196]
3 years ago
8

How much will $100 grow to if invested at a continuously compounded interest rate of 10% for 8 years?

Mathematics
1 answer:
aleksley [76]3 years ago
4 0

Answer:

It will grow to $222.55.

Step-by-step explanation:

The formula for continuosly compounded money quantities is:

F = Pe^{rt}

In which F is the final amount, that is, to how much the money grows, P is the initial deposit, r is the interest rate, as a decimal, and t is the time, in years.

In this problem, we have that:

P = 100, r = 0.1, t = 8

So

F = Pe^{rt}

F = 100e^{0.1*8}

F = 222.55

It will grow to $222.55.

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