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What is the total amount for an investment of $1600 invested at 4.25% for 20 years and compounded continuously?

User Elinor
by
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1 Answer

4 votes

Answer:

$3743.43

Explanation:

The amount is given by the formula ...

A = Pe^(rt)

where P is the principal, r is the annual rate compounded continuously, and t is the number of years. Filling in the values, we get ...

A = $1600·e^(0.0425·20) = $1600·e^0.85

≈ $1600·2.33964685 ≈ $3743.43

The amount in the account will be $3743.43.

User Alltom
by
3.9k points