Question

If $7025 is invested at a rate of 10% compounded continuously, what will be the balance after 12 years? Round your answer to two decimal places.

Answer 1

p = $7025

r = 10% = 10/100 = 0.1

t = 12

$A=pe^{rt}$

Therefore,

$\begin{gathered} A=7025\times e^{0.1\times12} \\ A=7025\times e^{1.2} \\ A=7025\times3.32011692274 \\ A=23323.8213822 \\ A=\text{ \ }23323.82 \end{gathered}$

Balance after 12 years = $23,323.82