A person places $7320 in an investment account earning an annual rate of 8.2%,
1 answer:
Answer:
The amount of money after 12 years is $19581.99 to the nearest cents
Step-by-step explanation:
The formula of the compound continuously interest is V = P , where
- V is the value of the account in t years
- P is the principal initially invested
- e is the base of a natural logarithm
- r is the rate of interest in decimal
∵ A person places $7320 in an investment account
∴ P = 7320
∵ The account earning an annual rate of 8.2%, compounded continuously
∴ r = 8.2% ⇒ divide it by 100 to change it to decimal
∴ r = 8.2 ÷ 100 = 0.082
∵ The time is 12 years
∴ t = 12
→ Substitute these values in the formula above to find V
∵ V = 7320
∴ V = 19581.99121 dollars
→ Round it to the nearest cents ⇒ 2 d.p
∴ V = 19581.99 dollars
∴ The amount of money after 12 years is $19581.99 to the nearest cents.
You might be interested in
1. Factor the expression
2. Since is placed in the denominator of the given expression, then
3. Now the expression can be simplified: