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15 January, 20:54

The value of $1300invested at 4.2% interest compounded continuously for 5 years, 9 months

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  1. 16 January, 00:01
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    For continuously compounded interest:

    Amount = Principle * e^ (rate*time)

    A = Pe^ (rt)

    Principle = 1300

    Rate of 4.2% converted to decimal value: r=0.042

    (Move decimal two places)

    Time 5years 9months converted to years: 5.75

    (9 months / 12 months = 0.75)

    Plug in the values,

    Amount = 1300 * e^ (0.042 * 5.75)

    And let your calculator do the rest.
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