Question

Find the compound amount and compound interest on $6000 invested at 6%

compounded continously for 6 years. Use e = 2.71828
(Round value of exponential expression upto 4 decimal places.)

Answer 1

$8,511.1147

Explanation:

Compound interest formula is expressed as;

A = P(1+r)^n

P is the amount invested = $6000

r is the rate = 6% = 0.06

t is the time = 6yrs

A is the compound amount

A = 6000(1+0.06)^6

A = 6000(1.06)^6

A = 6000(1.4185)

A = 8,511.1147

Hence the compound amount to 4dp is $8,511.1147