Question

Jace invested $8,300 in an account paying an interest rate of 6.6% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 14 years?​

Answer 1

Answer:

• $20911

Step-by-step explanation:

Given

• Investment   P₀ = $8300
• Interest rate   r = 6.6%
• Compound = continuous
• Time   t=14 years
• P = ?

Formula for continuous compound interest:

• P = P₀e ^rt, where e = 2.71828, constant used for continuous interest
• P = 8300*(2.71828)^(14*0.066)
• P = $20910.57 = $20911 rounded to the nearest dollar