Question

You invest $2,800 in an account that pays an interest rate of 6.5% compounded continuously calculate the balance of your account after 19 years. Round your answer to the nearest hundredth

Answer 1

$9627.46

Explanation:

-The amount after 19 years for a 6.5% compounded continuously is given by the formula:

`A=Pe^(rt)`

Where:

A is the final amount after investment

P is the initial amount invested

r is the stated annual interest rate.

t is period of investment

#We then substitute our values in the equation to solve for A:

`A=Pe^(rt)\\\\=2800e^(19* 0.065)\\\\=9627.46`

Hence, the amount after 19 years is $9,627.46