Question

You deposit $2,200 in a bank account that pays 11% stated annual interest compounded continuously. What is the value of your investment at the end of 7 years? Please round your answer to the nearest hundredth.

Answer 1

Answer: $4,751.49

Step-by-step explanation:

When the compounding is continuous, the following expression is used;

Amount = P * (e)^rt

= 2,200 * (e) ^ ( 0.11 * 7)

= 4751.485758

= $4,751.49