Question

Suppose you invest $2500 at an annual interest rate of 3% compounded continuously. How much will you have in the account after 7 years? Round the solution to the nearest dollar.

Answer 1

P = $2500, n = 7,  r = 3% = 0.03
F = P / ( 1 + r ) ^t
F = $2500 * 1.03^(7) = $2500 * 1.22987 = $3074.68 = $3075

Answer 2

Answer:

$3084

Step-by-step explanation:

The principle amount, P = $2500

Interest rate = 3% = 0.03

t = 7 years.

The formula for compounded continuously is given by

$A=Pe^{rt}$

Substituting the known values, we get

$A=2500e^{0.03\cdot7}$

On simplifying, we get

$A=\ 3084.195$

Therefore, the amount after  7 years in $3084