Question

Find the amount of money accumulated if you invested $25,000 at 4.3% interest for 8 years compounded continuously .

Answer 1

The appropriate formula for the accumulated amount (A) for a given principal (P), interest rate (r), and time period (t) is ...

... A = P·e^(rt)

Filling in the given numbers and doing the arithmetic, we get

... A = $25,000·e^(.043·8) ≈ $35,264.46