Question

Aaron invested $7,500 in an account paying an interest rate of 1.5% compounded
continuously. Assuming no deposits or withdrawals are made, how much money, to
the nearest hundred dollars, would be in the account after 8 years?

Answer 1

Answer:

8500

Step-by-step explanation:

When compounded continuously the future value,  FV , of your initial investment,  PV , is determined with the the equation

$FW = PV$ ×$e^{rxt}$

where  r  is the norminal interest rate, expressed as a decimal, and  t  is the investment period in years.

Plugin the values in this equation gives

$FW = 7,500$ × $e^{0.015x8} = 8,456.23$

Round to nearest hundred dollars = 8500