Question

Calculate the balance of your account after 15 years. Round your answer to the nearest hundredth.

Answer 1

$13,054.13

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 7.25% into a decimal:

7.25% ->
`(7.25)/(100)` -> 0.0725

Now, plug the values into the equation:

`A=4,400e^(0.0725(15))`

`A=13,054.13`

Your balance will be $13,054.13