Question

Determine the amount of money you would have if you invested $15,000 dollars for 11 years at 3% annual interest compounded continuously.
Please Show Your Work

Answer 1

Answer:

The amount after 3 years of investment is $20763  .

Step-by-step explanation:

Given as :

The principal invested = p =$15,000

The rate of interest = r = 3% compounded annually

The time period = t = 11 years

Let The Amount after 3 years = $ A

From Compounded method

Amount = Principal × $(1+\dfrac{\textrm rate}{100})^{\textrm time}$

Or, A = p × $(1+\dfrac{\textrm r}{100})^{\textrm t}$

Or, A = $15,000 × $(1+\dfrac{\textrm 3}{100})^{\textrm 11}$

Or, A = $15,000 × $(1.03)^{11}$

Or, A = $15,000 × 1.3842

Or, A = $20763

So, Amount = A = $20763

Hence The amount after 3 years of investment is $20763  . Answer