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17 October, 04:47

Suppose you invest $7500 at an annual interest rate of 4.2% compounded continuously. How much will you have in the account after 2 years? Round the solution to the nearest dollar

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  1. 17 October, 06:01
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    7500 * 4.2%=315 since its an annual interest rate the 4.2% is paid once a year and its a time period of 2 years so

    7500 + 315 = 7815 for the first year

    7815 * 4.2% = 328.23

    7815 + 328.23 = 8143.23 for the second year so you then add your 2 years together

    7815 + 8143.23 = 15958.23

    now round your answer and you get 15958$ in a 2 year period
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