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Murrr4er [49]
2 years ago
15

Tara placed $1200 in a savings account which compounds interest continuously at a rate of 1.4%.

Mathematics
2 answers:
pickupchik [31]2 years ago
7 0

Answer:

$1,251

Step-by-step explanation:

Formula: A = P(1 + \frac{r}{n})^{nt}

A = final amount

P = initial principal balance

r = interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

Plug the values into the formula; solve:

r = \frac{r}{100}

r = \frac{1.4}{100}

r = 0.014

0.014 rate per year

A = Pe^{rt}

A = 1,200.00^{(2.71828)}^{(0.014)(3)}

A = $1,251.47\\

1,251.47 is 1251 rounded because the first value after the decimal point is not greater or equal to 5.

densk [106]2 years ago
6 0
1,251
1200+1,4%=1,201.4 and so on
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