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Suppose you invest $500 at an annual interest rate of 8.2% compounded continuously. How much will you have in the account after 15 years?


$1,671.74

$17,028.75

$1,710.61

$8,140.92

Verified Answer :

nobillionaireNobley

A = Pe^rn = 500e^(0.082 x 15) = 500e^1.23 = $1,710.61

InesWalston

Answer:

You will have $1710.61 after 15 years.

Step-by-step explanation:

We know that, in case of continuous compounding,

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where,

A = Future amount

P = Principal = $500

r = rate of interest = 8.2% = 0.082

t = time period = 15 years

Putting all the values,

\(A=500e^{0.082\times 15}\)

\(=500e^{1.23}\)

\(=\$1,710.61\)