Question

Determine the amount of money you would have if you invested $15,000 dollars for 11 years at 3% annual interest compounded continuously.

Please Show Your Work

Answer 1

The amount after 3 years of investment is $20763 .

Explanation:

Given as :

The principal invested = p =$15,000

The rate of interest = r = 3% compounded annually

The time period = t = 11 years

Let The Amount after 3 years = $ A

From Compounded method

Amount = Principal ×
`(1+(\textrm rate)/(100))^(\textrm time)`

Or, A = p ×
`(1+(\textrm r)/(100))^(\textrm t)`

Or, A = $15,000 ×
`(1+(\textrm 3)/(100))^(\textrm 11)`

Or, A = $15,000 ×
`(1.03)^(11)`

Or, A = $15,000 × 1.3842

Or, A = $20763

So, Amount = A = $20763

Hence The amount after 3 years of investment is $20763 . Answer