Question

Mei invests $7,396 in a retirement account

with a fixed annual interest rate of 7%
compounded continuously. What will the
account balance be after 16 years?

Answer 1

21, 834. 20 ($)

Explanation:

A (1 + increase) ^n = N

Where N is future amount, A is initial amount, increase is percentage increase/decrease, n is number of mins/hours/days/months/years.

A = 7396, increase = 7% (0.07), n = 16.

7396 (1 + 0.07)^16

= 7396 (1.07)^16

= 21, 834. 20 ($)