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lorasvet [3.4K]
2 years ago
12

An initial deposit of $10000 is left in account for 5.5 years at 3.6% interest compounded continuously. What is the

Mathematics
2 answers:
aniked [119]2 years ago
4 0

Answer:

11980

Step-by-step explanation:

This is simple interest.

We use the formula i=prt. Interest = price x rate x time

You just plug in your numbers, 10000 is your price, 5.5 years is the time, and 3.6% interest is rate.

Now our equation looks like this: i = 10000 x 5.5 x 0.036

(i converted the percent to a decimal)

So the interest is 1980, but the question asks for the final value, so we add the interest to the initial deposit, 1980 + 10000, and we get 11980 for our final value.

I apologize if my answer is wrong, but if it isn't I hope I helped :)

nataly862011 [7]2 years ago
3 0

9514 1404 393

Answer:

  $12,190

Step-by-step explanation:

The formula for the balance in an account where continuous compounding occurs is ...

  A = Pe^(rt) . . . . where P is the principal invested at annual rate r for t years

  A = $10,000e^(0.036·5.5) = $10,000e^0.198

  A ≈ $12189.62 ≈ $12,190 . . . . rounded to the nearest dollar

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