Question

Jasmine invests $2,658 in a retirement account with a fixed annual interest rate of 9% compounded continuously. What will the account be after 15 years

Answer 1

$10,253.04

Explanation:

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

`A = Pe^(rt)`

P = principal amount

r = interest rate (decimal)

t = time (years)

First, change 9% into a decimal:

9% ->
`(9)/(100)` -> 0.09

Next, plug the values into the equation:

`A=2,658e^(0.09(15))`

`A=10,253.04`

The account will have $10,253.04