Question

Please 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

The amount of money you have is $ 20864.521

Solution:

Given that you invested $15,000 dollars for 11 years at 3% annual interest compounded continuously.

To find: total amount of money

The compound interest formula for compounded continously is given as:

`A = p e^(rt)`

Where "p" is the principal

"r" is the rate of interest

"t" is the number of years

Here in this problem, p = 15000

t = 11 years

`r = 3 \% = (3)/(100) = 0.03`

Substituting the values in formula we get,

`A = 15000e^(0.03 * 11)\\\\A = 15000e^(0.33)\\\\A = 15000 * 1.390968\\\\A = 20864.521`

Thus the amount of money you have is $ 20864.521