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%

Answer 1

Answer:

a) $1920, b) $2880, c) $4320, d) $6720

Step-by-step explanation:

a) Interest = Principal(Rate)(time)/100

  Interest = $8000(12)(2)/100

Interest = $1,920

b) Interest = $8000(3)(12)/100

Interest = $2880

c) Interest = $8000(4.5)(12)/100

Interest = $4320

d) Interest = $8000(7)(12)/100

Interest = $6720