Question

Find the amount of money that will be accumulated in a savings account if $7600 is invested at 7.0% for 10 years and the interest is compounded continuously. round your answer to two decimal places.

Answer 1

To find the amount of money accumulated in a savings account with continuous compounding, use the formula A = P*e^(rt) where P is the principal, r is the interest rate, and t is the time period.

Step-by-step explanation:

To find the amount of money that will be accumulated in a savings account with continuous compounding, we can use the formula:

A = P*e^(rt)

Where A is the amount accumulated, P is the principal investment, r is the interest rate, and t is the time period.

Using the given values, we have:

A = $7600*e^(0.07*10)

Solving this equation gives us the amount of money that will be accumulated in the savings account.