Question

If $7025 is invested at a rate of 10% compounded continuously, what will be the balance after 12 years? Round your answer to two decimal places.

Answer 1

p = $7025

r = 10% = 10/100 = 0.1

t = 12

`A=pe^(rt)`

Therefore,

`\begin{gathered} A=7025* e^(0.1*12) \\ A=7025* e^(1.2) \\ A=7025*3.32011692274 \\ A=23323.8213822 \\ A=\text{ \$}23323.82 \end{gathered}`

Balance after 12 years = $23,323.82