Question

you put $20,000 into an account that pays 7.25% compounded continuously. How much money will you have in there after 10 years?

Answer 1

To calculate the compound continuosly in a certain ammount of time we need to use the formula

`A=Pe^(rt)`

where P is the principal invesment, r is the interest rate in decimal form, and t is the time.

In our case P is $20,000, r is 0.075, and t is 10. Then

`\begin{gathered} A=20000e^(0.075\cdot10) \\ =42340 \end{gathered}`

Therefore she will have $42,340 after ten years.