Question

What is the compound interest if $480 is invested for 12 years at 6% compounded continuously?

Answer 1

Answer:

$506.13

Step-by-step explanation:

$A = Pe^{rt}$

$A = 480 \times e^{0.06 \times 12}$

$A = 986.13$

The account will be worth $986.13.

The interest earned is $986.13 - $480 = $506.13.