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15 May, 11:00

You invest $1600 into an account that pays an interest rate of 4.75 percent compounded continuously. Calculate the balance after seven years.

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  1. 15 May, 14:01
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    Compounding continuously uses the A = Pe^ (rt) formula

    A = amount in the account after specified period of time

    P = principal

    e = constant

    r = rate (change to decimal)

    t = time in years

    A = 1600e^ (.0475*7)

    A = $ 2231.12
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