If $125 is invested at an interest rate of 18% per year and is compounded continuously, how much will the investment be worth in 2 years? Us

Question

If $125 is invested at an interest rate of 18% per year and is compounded continuously, how much will the investment be worth in 2 years? Use the continuous compound interest formula A=Pe^rt

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Sophia 2 weeks 2021-09-10T22:10:18+00:00 2 Answers 0

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    0
    2021-09-10T22:12:12+00:00

    Answer: The investment be worth $ 174.05 in 2 years .

    Step-by-step explanation:

    Given : The principal amount invested  : A= $125

    Interest rate : r = 18% =0.18   [ Percent convert into decimal if we divide it by 100]

    Time : t = 2 years

    The formula to find the accumulated amount if compounded continuously :-

    A=Pe^rt\\\\=(125)(1+0.18)^{2}\\\\= 125 (1.18)^2\\\\ = 125 (1.3924)\\\\=174.05

    Hence, the investment be worth $ 174.05 in 2 years .

    0
    2021-09-10T22:12:12+00:00

    Answer:

    $179.17

    Step-by-step explanation:

    https://brainly.com/question/12714871

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