Answer:
We conclude that the total amount accrued, principal plus interest, from compound interest on an original principal of $4,500.00 at a rate of 3.2% per year compounded continuously over 1.5 years is $4,721.27.
Step-by-step explanation:
Given
- Principle P = 4500 (Let say in $)
- Interest rate r = 3.2% = 0.032
- Time period t = 1.5 years
To determine
Accrue Amount A = ?
Using the formula
[tex]A\:=\:Pe^{rt}[/tex]
substitute r = 0.032, P = 4500, and t = 1.5
[tex]A\:=\:4,500.00\left(2.71828\right)^{\left(0.032\right)\left(1.5\right)}[/tex]
A = $ 4721.27
Therefore, we conclude that the total amount accrued, principal plus interest, from compound interest on an original principal of $4,500.00 at a rate of 3.2% per year compounded continuously over 1.5 years is $4,721.27.
