Question
If $8000 is invested in an account for which interest is compounded continuously, find the amount of the investment at the end of 12 years for the following interest rates.
a) 2%
b) 3%
c) 4.5%
d) 7%
a) 2%
b) 3%
c) 4.5%
d) 7%
Answers
Reiny
a)
amount = 8000 e^(12(.02))
= 8500 e^.24
= $ 10805.62
repeat procedure for the others
amount = 8000 e^(12(.02))
= 8500 e^.24
= $ 10805.62
repeat procedure for the others