Answer:
Compounded Annually: $100,776.96
Compounded Continuously: $101,699.93
Explanation:
First, you are going to want to use the normal compound interest formula, which is shown below.
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
Change 8% into a decimal:
8% ->
-> 0.08
Now, plug in the values into the equation:
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To find the interest compound continuously, use the following formula:
Now, plug in the values: