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What is the compound interest if $95,000 is invested for 4 years at 5% compounded continuously.

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User Supriya
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8.6k points

1 Answer

3 votes

Answer:

The compound interest is $ 21,033.4171.

Step-by-step explanation:

The compound interest is $ 21,033.4171.Given

$ 95,000 is invested for 4 years at 5 % compounded continuously.

Formula

A= Pe^rt

A is the final amount,

P is the initial amount,

r is the interest rate compounded continuously,

t is the time in years.

Therefore,

A = 95,000 × 2.7183 ^ 5 / 100 × 4 = 116,033.4171

So, the compound interest is 116,033.41716 − 95,000 = $ 21,033.4171.

answered
User Apoorv Verma
by
8.0k points

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