Answer:
$2415
Step-by-step explanation:
Compound interest :
A = P(1 + r/n)^nt
n = number of compounding times per period
A = final amount ; P = initial investment
For account compounded continuously :
A = Pe^it
i = interest ; t number of years ;
Gabriel:
P = $860 ; i = 6 1/2 % = 13/2% = 0.065
When P triples ; A = 860 * 3 = 2580
2580 = 860*e^0.065t
2580/860 = e^0.065t
3 = e^0.065t
Take In
In(3) = 0.065t
1.0986122 = 0.065t
t = 1.0986122 / 0.065
t = 16.90 years
Kaylee's account at t = 16.90 years
Number of months = 16. 9 * 12 = 202.8 = 203
Rate = 6 1/8% = 6.125% = 0.06125
A = 860(1 + 0.06125 / 12)^202.8
A = 860(1 + 0.0051041) ^202.8
A = 860(1.0051041)^202.8
A = 860 * 2.8080176
A = 2414.8951
A = $2415
