Answered

Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

What is the compound interest if $134,000 is invested for 2 years at 7% compounded continuously.The interest is $. (Round to 2 decimal places.)

Sagot :

For a initial amount invested P at an annual interest rate r, after t years the total amount will be:

[tex]T=P\cdot(1+r)^t[/tex]

Then, the interest is given by:

[tex]I=T-P[/tex]

For P = $134,000, t = 2 years and r = 7%, we have:

[tex]\begin{gathered} T=134000\cdot(1+0.07)^2 \\ T=\text{ \$153,416.60} \\ I=T-P=153,416.60-134,000=\text{ \$19,416.60} \end{gathered}[/tex]

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We hope this was helpful. Please come back whenever you need more information or answers to your queries. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.