Question

Find the amount of money accumulated after investing a principle P for years t at interest rate r, compounded continuously. P = $10,000 r = 11% r = 11% t = 20 Round your answer to the nearest cent (hundredth). Enter

Answer 1

$~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \ 10000\\ r=rate\to 11\%\to \frac{11}{100}\dotfill &0.11\\ t=years\dotfill &20 \end{cases} \\\\\\ A=10000e^{0.11\cdot 20} \implies A=10000e^{2.2}\implies A \approx 90250.14$