Question

you deposit $22,000 into an account that earns 3.75 annual interest compounded continously. How much money will you have after 11 years?

Answer 1

The formula for the interest compounded continuosly is given by:

`A=Pe^(rt)`

Where:

A is the final amount.

P initial amount= $22,000

r rate of interest = 3.75% or 0.0375

t time in year = 11 years

e= Euelr's number= 2.72

Replacing the values:

`\begin{gathered} A=22000*e^((0.0375)*11) \\ A=33232.96993\approx33232.97 \end{gathered}`

Answer: The final amount after 11 years is $33232.97