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,

Andre Garzia asked Feb 2, 2023

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Andre Garzia asked Feb 2, 2023

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22 votes

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.

Mehedi answered Feb 7, 2023

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