Question

a
a
1) Jimmy invests $8,540 in a retirement
account with a fixed annual interest rate of
6.03% compounded continuously. What
will the account balance be after 14 years?
A) $16,422.64 B) $19,865.03
C) $18,522.03 D) $17,525.57

Answer 1

Answer:

B)  $19,865.03

Step-by-step explanation:

Continuous Compounding Formula

$\large \text{ \sf A=Pe^{rt} }$

where:

• A = Final amount
• P = Principal amount
• r = annual interest rate (in decimal form)
• t = time (in years)

Given:

• P = $8,540
• r = 6.03% = 0.0603
• t = 14 years

Substituting given values into the formula and solving for A:

$\large \implies \text{ \sf 8540e^{0.0603 \times 14}=19865.03215 }$