Question

What is the total amount for an investment of $1,250 invested at 9.6% for 12 years and compounded continuously? ≈ $5006.50 ≈ $6125.25 ≈ $4062.65 ≈ $3955.64

Answer 1

The total amount for the investment is approximately $4062.65.

Step-by-step explanation:

To calculate the total amount for an investment of $1,250 invested at 9.6% for 12 years and compounded continuously, we can use the formula A = P * e^(rt), where A is the total amount, P is the principal amount, e is the base of the natural logarithm, r is the annual interest rate, and t is the number of years. Plugging in the values, we have A = 1250 * e^(0.096 * 12). Using a calculator, we find that A is approximately $4062.65.

Answer 2

The formula of a continuous compound interest is
A=p e^rt
A future value?
P present value 1250
E constant
R interest rate 0.096
T time 12 years
A=1,250×e^(0.096×12)
A=3,955.64