Question

How would i solve this question step by step?

Answer 1

$14696.14

Explanation:

The formula for calculating the future value of an investment with continuous compounding is:

`\boxed{\tt FV = PV * e^(r * t)}`

where:

• FV is the future value of the investment
• PV is the present value of the investment (the initial deposit)
• r is the annual interest rate
• t is the number of years

In this case, we have:

• PV = $10000
• r = 5.5%=0.055
• t = 7 years

So, the future value of the investment is:

`\tt FV = 10000 * e^(0.055 * 7) = 14696.14`

Therefore, The amount after 7 years will be $
`\boxed{\tt 14696.14}`