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Determine the amount of money in an account when $15,000 is compounded continuously at an interest rate of 8.25% over a period of 25years

User INecas
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The continuously compounded interest formula is


A=Pe^(r\cdot t)

where A is the amount (future value), P is the principal (initial value), r is the interest rate and t is the time in years.

In our case, P=15 000, r= 0.0825 and t= 25. By substituting these values into our formula, we get


A=15000e^(0.0825\cdot25)

which gives


\begin{gathered} A=15000e^(2.0625) \\ \\ A=15000*7.86 \\ A=117984.14 \end{gathered}

Then, the answer is $117,984.14

User Kristo
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