If $1,120 is invested at an interest rate of 15% per year and is compounded contonuously, how much will the investment be worth in 7 years?

Question

If $1,120 is invested at an interest rate of 15% per year and is compounded contonuously, how much will the investment be worth in 7 years? Use the continuous compound interest formula: A=Pr^rt.​

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Alice 1 week 2021-11-26T00:55:16+00:00 2 Answers 0

Answers ( )

    0
    2021-11-26T00:56:40+00:00

    Answer:3,200.57

    Step-by-step explanation:

    0
    2021-11-26T00:57:04+00:00

    Answer:

    \$3,200.57  

    Step-by-step 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=7\ years\\ P=\$1,120\\ r=0.15  

    substitute in the formula above  

    A=\$1,120(e)^{0.15*7}=\$3,200.57  

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