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.​

Answer 1

Answer:3,200.57

Explanation:

Answer 2

`\$3,200.57`

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`