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Suppose you received $ 8000 cash as a birthday gift, and you decided to deposit il union that pays 9.125 % interest compounded continuously. How much money will you have in 25 years

User Salmanbw
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Final answer:

The final amount after 25 years of depositing $8000 in a union that pays 9.125% interest compounded continuously is approximately $41,033.39.

Step-by-step explanation:

Compound Interest Formula:

The compound interest formula is given by:

A = P * e^(rt)

Where:

  • A is the final amount after time t
  • P is the initial principal (the amount of money deposited)
  • e is Euler's number (approximately equal to 2.71828)
  • r is the interest rate (decimal form)
  • t is the time in years

Calculating the Future Value:

In this case, we have P = $8000, r = 9.125%, and t = 25 years. Plugging in these values into the formula:

A = $8000 * e^(0.09125 * 25)

A ≈ $41,033.39

Therefore, you are projected to have approximately $41,033.39 in 25 years.

User Jonas Lindahl
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