Question

Plz show your work

Determine the amount of money you would have if you invested $15,000 dollars for 11 years at 3% annual interest compounded continuously.

Answer 1

`\$20,864.52`

Explanation:

we know that

The formula to calculate continuously compounded interest is equal to

`A=P(e)^(rt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

e is the mathematical constant number

we have

`t=11\ years\\ P=\$15,000\\ r=3\%=3/100=0.03`

substitute in the formula above

`A=15,000(e)^(0.03*11)`

`A=15,000(e)^(0.33)`

`A=\$20,864.52`