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A person places $8430 in an investment account earning an annual
rate of 3.8%, compounded continuously. Using the formula
V = Pert, where V is the value of the account in t years, P is the
principal initially invested, e is the base of a natural logarithm, and r is
the rate of interest, determine the amount of money, to the nearest
cent, in the account after 16 years.

Respuesta :

Answer:

V=15483.838≈15483.84

Step-by-step explanation:

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The amount of money in the account after 16 years with compound interest will be $ 15483.84.

What is compound interest?

Compound interest is a type of interest where the principal amount is added with the interest after every single period and then interest is calculated on the sum.

Given, Principle(P) = $8430.

Rate of earning(%r) = 3.8% = 0.038.

Time period(t) = 16 years.

Now, V = P × [tex]e^{rt}[/tex] = $ 8430 × e ∧ (0.038 × 16) = $ 8430 × e ∧ 0.608 = $ 8430 × 1.837 = $ 15483.84

Hence, the amount of money in the account after 16 years with compound interest will be $ 15483.84.

Learn more about compound interest here: https://brainly.com/question/22621039

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