Question

Please show your work.

Answer 1

The amount of money you have is $ 20864.521

Solution:

Given that you invested $15,000 dollars for 11 years at 3% annual interest compounded continuously.

To find: total amount of money

The compound interest formula for compounded continously is given as:

$A = p e^{rt}$

Where "p" is the principal

"r" is the rate of interest

"t" is the number of years

Here in this problem, p = 15000

t = 11 years

$r = 3 \% = \frac{3}{100} = 0.03$

Substituting the values in formula we get,

$A = 15000e^{0.03 \times 11}\\\\A = 15000e^{0.33}\\\\A = 15000 \times 1.390968\\\\A = 20864.521$

Thus the amount of money you have is $ 20864.521