RoseCrystal01
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Suppose $24,000 is deposited into an account paying 7.25% interest, which is compounded continuously.

How much money will be in the account after ten years if no withdrawals or additional deposits are made?


$49,553.54


$48,326.40


$47,897.10


$46,414.20

Respuesta :

fieryanswererft

Answer:

$49,553.54

Explanation:

[tex]\sf Continuously \ compound \ interest : {A = P e^{rt}[/tex]

[tex][\sf where \ A \ is \ final \ amount, \ P \ is \ principal \ amount, \ r \ is \ interest \ rate, \ n \ is \ years][/tex]

Here given following:

  • principal amount (P) = $24,000
  • rate of interest (r) = 7.25%
  • years (t) = 10 years

Inserting these values in formula:


[tex]\rightarrow {A = 24000e^{7.25\% (10)}[/tex]

simplify following

[tex]\rightarrow {A = 49553.54[/tex]

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