Arjun invests $3,340 in a retirement account with a fixed annual interest rate of 6% compounded continuously. What will the account balance be after 20 years.

Question

Social Studies

Lane Stein

6 December, 11:12

Arjun invests $3,340 in a retirement account with a fixed annual interest rate of 6% compounded continuously. What will the account balance be after 20 years.

+5

Answers (1)

Know the Answer?

Mitchell Trevino · Answer 1

= $ 11,089.19

Explanation:

Using the formula A = Pe^ (r*t).

Where A is the accrued amount,

r is the annual nominal rate of interest as a decimal,

P is the principal amount, and

t is the time involved in years

Therefore;

A = Pe^ (r*t).

r = 0.06; P = 3340; t = 20.

A = 3340 * e^ (0.06*20)

= 11,089.19

= $11,089.19