Question

isaac invested $77,000 in an account paying interest rate of 4.6% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be the count after 12 years?

Answer 1

Answer:

$133,728 would be in the count after 12 hours.

Step-by-step explanation:

Continuous compounding:

The amount of money, in continuous compounding, after t years, is given by:

$P(t) = P(0)e^{rt}$

In which P(0) is the initial deposit and r is the interest rate, as a decimal.

Isaac invested $77,000 in an account paying interest rate of 4.6% compounded continuously.

This means that $P(0) = 77000, r = 0.046$

Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be the count after 12 years?

This is P(12). So

$P(t) = P(0)e^{rt}$

$P(12) = 77000e^{0.046*12} = 133728$

$133,728 would be in the count after 12 hours.