Question

Cynthia invested $12,000 in a savings account. If the interest rate is 6%, how much will be in the account in 10 years by compounding continuously? Round to the nearest cent.

Answer 1

Answer:

• $21865.43

Step-by-step explanation:

Given:

• Investment P = $12000
• Interest rate r = 6% or 0.06
• Time t = 10 years
• Compound number n = continuous

Use formula below to find the final amount:

• $A=P*e^{rt}$

Find the amount:

• $A=12000*e^{0.06*10}=21865.43$

Answer 2

☆Answer :

• p = $12,000
• r = 6%
• t = 10years
• n = continou

A = p • e^(rt)

A = 12,000•e^(6%•10)

A = 21865.43