Question

You invest 1,200 in an account that pays an interest rate of 7.25% compounded continuously. Calculate the balance of your account after 7 years. Round your answer to your nearest hundredth.
Formula:
A=Pe^rt

Answer 1

$\bf ~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \ 1200\\ r=rate\to r\%\to \frac{r}{100}\dotfill &0.0725\\ t=years\dotfill &7 \end{cases} \\\\\\ A=1200e^{0.0725\cdot 7}\implies A=1200e^{0.5075}\implies A\approx 1993.36$