Question

What is the compound interest if $480 is invested for 12 years at 6% compounded continuously?

Answer 1

$506.13

Explanation:

`A = Pe^(rt)`

`A = $480 * e^(0.06 * 12)`

`A = $986.13`

The account will be worth $986.13.

The interest earned is $986.13 - $480 = $506.13.