Question

Danielle invests $2,007 in a retirement
account with a fixed annu interest rate of
7o compounded continuously. What will
the account balance be after 16 years?

Answer 1

Formula For finding Simple interest= Profit x rate x time/ 100

Profit = $2,007 x Rate= 7% x Time = 16 years


2,007 x 7 x 16
__________ = 224,784 ÷100 = 2,247.84
100


Answer :- 2247.84

Answer 2

A=pe^rt
A future value
P present value 2007
R interest rate 0.07
T time 16 years

A=2,007×e^(0.07×16)
A=6,151.16