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For a starting dollar amount of $27,430 and an annual interest rate of 4.23%

compounded continuously, use the Continuously Compounded Interest Formula to find the
final dollar AMOUNT after 22 YEARS.
Continuously Compounded Interest Formula:
A=P*e(ret)
Section 4B
$69.563.31
$69.091.44
$69,481.92
$69.258.03
$69.685.23

1 Answer

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Final answer:

The final dollar amount after 22 years with continuous compound interest is approximately $69,481.92.

Step-by-step explanation:

To find the final dollar amount after 22 years with continuous compound interest, we can use the formula: A = P * e^(rt),

where A is the final amount, P is the initial amount, e is the base of the natural logarithm (approximately 2.71828), r is the annual interest rate, and t is the time in years.

Plugging in the given values, A = $27,430 * e^(0.0423 * 22).

Using a calculator or an online tool, we can find that e^(0.0423 * 22) is approximately 2.7448192.

Multiplying this by $27,430, we find that the final amount is approximately $69,481.92.

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