Question

What is the total amount for an investment of $1600 invested at 4.25% for 20 years and compounded continuously?

Answer 1

Answer:

  $3743.43

Step-by-step explanation:

The amount is given by the formula ...

  A = Pe^(rt)

where P is the principal, r is the annual rate compounded continuously, and t is the number of years. Filling in the values, we get ...

  A = $1600·e^(0.0425·20) = $1600·e^0.85

  ≈ $1600·2.33964685 ≈ $3743.43

The amount in the account will be $3743.43.