Question

All changes saved16. Suppose you invest $7500 at an annual Interest rate of 4.2% compounded continuously. How much will you have in the account after 2 years? Round the solution to the nearest dollar.$8158$17,372$17,373$8157

Answer 1

We have to use the continuous compound interest formula

`A=P\cdot e^(rt)`

Where P = 7500, r = 0.042, t = 2. Let's replace and solve

`\begin{gathered} A=7500\cdot e^(0.042\cdot2) \\ A\approx8,157 \end{gathered}`Hence, the answer is $8,157.