If $10,000 is invested at 7% annual interest, which is compounded continuously, what is the account balance after 8 years, assuming no additional deposits or withdrawals are made ? a. $27,259.46 b. $17,181.86 c. $17,506.72 d. 17,525.21
Added by Maureen R.
Step 1
In this case, P = $10,000, r = 7% or 0.07, and t = 8 years. So, A = $10,000 * e^(0.07*8) = $10,000 * e^0.56 ≈ $17,259.46. Show more…
Show all steps
Close
Your feedback will help us improve your experience
Cheryl Glor and 65 other Algebra educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
If 7000 dollars is invested in a bank account at an interest rate of 7 per cent per year Find the amount in the bank after 8 years if interest is compounded continuously
Vishal P.
If $14,000 is invested at 7% annual interest, which is compounded continuously, what is the account balance after 12 years, assuming no additional deposits or withdrawals are made?
Nick J.
If you invest $\$ 5,250$ in an account paying $6.38 \%$ compounded continuously, how much money will be in the account at the end of (A) 6.25 years? (B) 17 years?
Exponential and Logarithmic Functions
Exponential Functions
Recommended Textbooks
Elementary and Intermediate Algebra
Algebra and Trigonometry
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD