Melanie invested 5,500 in an account paying an interest rate of 6.9% compounded continuously. How much money to the nearest dollar would be in the account after 11 years

Correct answer: AV = 11,748 $

Step-by-step explanation:

Given:

I = 5,500$

n = 11 years

p = 6.9 % = 0.069

where is:

AV - accumulated value

I - investment

p - interest

n - number of years as the accounting period

Accumulated value of an investment continuously compounded is calculated with next formula:

AV = I · eⁿᵇ where is:

n - number of years as the accounting period

b = p = 6.9% = 0.069

n · b = 11 · 0.069 = 0.759

AV = 5,500 · e⁰⁷⁵⁹ = 5,500 · 2.7183⁰⁷⁵⁹ = 5,500 · 2.136 = 11,748 $

AV = 11,748 $

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