Question

$7775 principal earning 7% compounded continuously after 14 years

Answer 1

The total amount earned is $20,716.

Explanation:

The amount of money earned in interest which is compound continuosly after t years is given by the following equation:

`A(t) = Pe^(rt)`

In which A(t) is the amount of money after t years, P is the principal(initial deposit) and r is the interest rate, as a decimal.

$7775 principal earning 7% compounded continuously

This means that
`P = 7775, r = 0.07`

Then

`A(t) = Pe^(rt)`

`A(t) = 7775e^(0.07t)`

After 14 years:

This is A(14).

`A(14) = 7775e^(0.07*14) = 20716`

The total amount earned is $20,716.