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 of money you have if you invested $15,000 dollars for 11 years at 3% annual interest compounded continuously is $20864.521

Solution:

You invested $15,000 dollars for 11 years at 3% annual interest compounded continuously

To find: total amount of money

The compound interest formula for compounded continously is given as:

`A = p e^(rt)`

Where "p" is the principal

"r" is the rate of interest

"t" is the number of years

Here in this problem,

p = 15000

r = 3 % =
`(3)/(100)` = 0.03

t = 11 years

Substituting the values in formula we get,

`A = 15000e^(0.03 * 11)`

`A = 15000e^(0.33)\\\\A = 15000 * 1.3909 \\\\A = 20864.521`

So the amount of money you have is $ 20864.521