contestada

If $1,120 is invested at an interest rate of 15% per year and is compounded continuously, how much will the investment be worth in 7 years? Use the continuous compound interest formula: A = Pert.

$565.91
$1,131.82
$1,244.00
$3,200.57

Respuesta :

absor201

Answer:

3200.57

Step-by-step explanation:

Step 1: Write the data

Principal (P) = 1120

Rate (R) = 15%

Time = 7 years

Step 2: Write the formula

A = (Principal x e)^rate x time

Step 3: Apply the formula

A = Pe^rt

A = 1120e^0.15*7

A = 3200.57

Therefore, the investment will be worth $3200.57 in 7 years.

!!

JeanaShupp

Answer:  $3,200.57

Step-by-step explanation:

Given : Principal amount invested : P= $ 1,120

Rate of interest : r= 15% = 0.15

Time: t = 7 years

The continuous compound interest formula:-

[tex]A = Pe^{rt}[/tex]

Substitute all the values in the formula , we get

[tex]A = 1120e^{0.15\times7}\\\\\Rightarrow\ A=1120 (2.85765111806)\\\\\Rightarrow\ A=3200.56925223\approx3200.57 [/tex]

Hence, the compounded amount after 7 years = $3200.57

Otras preguntas