Question

Suppose you take $5800 and invest it with an 8% interest rate for 16 years compounded continuously, how much money will you have?

Answer 1

Answer:

$20,860.51

Step-by-step explanation:

The multiplier of the investment is e^(rt), where r is the interest rate and t is the time period. In this case, the balance will be ...

A = 5800·e^(0.08·16) = 5800·e^1.28 ≈ 5800·3.5966397 = 20,860.51

You will have about $20,860.51.