Question

you have $15,000 to invest for 5 years at 5.5% annual interest rate that is compounded continuously. how much money will you have at the end of 5 years?

Answer 1

$19,747.96

Explanation:

You are going to want to use the continuous compound interest formula, which is shown below:

`A = Pe^(rt)`

A = total

P = principal amount

r = interest rate (decimal)

t = time (years)

First, lets change 5.5% into a decimal:

5.5% ->
`(5.5)/(100)` -> 0.055

Next, plug in the values into the equation:

`A=15,000e^(0.055(5))`

`A=19,747.96`

After 5 years, you will have $19,747.96