Answer:
A = $ 8,951.33
Explanation:
A = $ 8,951.33
A = P + I where
P (principal) = $ 6,500.00
I (interest) = $ 2,451.33
Formula:
Continuous Compounding Formulas (n → ∞)
Calculate Accrued Amount (Principal + Interest)
A = Pe^rt
Calculate Principal Amount, solve for P
P = A / e^rt
Calculate rate of interest in decimal, solve for r
r = ln(A/P) / t
Calculate rate of interest in percent
R = r * 100
Calculate time, solve for t
t = ln(A/P) / r
A = Accrued Amount (principal + interest)
P = Principal Amount
I = Interest Amount
R = Annual Nominal Interest Rate in percent
r = Annual Nominal Interest Rate as a decimal
r = R/100
t = Time Involved in years, 0.5 years is calculated as 6 months, etc.
n = number of compounding periods per unit t; at the END of each period
Compound Interest Equation
A = P(1 + r/n)^nt