Answered

Westonci.ca is the best place to get answers to your questions, provided by a community of experienced and knowledgeable experts. Discover a wealth of knowledge from experts across different disciplines on our comprehensive Q&A platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

carlos invests $1,357 in a savings account with a fixed annual interest rate of 8% compounded continuously. What will the account balance be after 8 years?

Sagot :

Answer:

$2573.52

Step-by-step explanation:

Compound Interest Formula (Continuous)

There's a formula that calculates how much an account that constantly compounds interest.

                                               [tex]P(t)=Pe^{rt}[/tex],

where P is the initial deposit, e is the natural constant (Euler's number), r is the rate of the interest (decimal form), t is the time in years, and P(t) is the value of the account at time t.

[tex]\hrulefill[/tex]

Solving the Problem

We're given

  • P = 1,357
  • r = 0.08
  • t = 8

all we have to do it plug it in and compute!

                                      [tex]P(8)=(1357)e^{(0.08)(8)}[/tex]

                                           [tex]P(8)=2573.52[/tex]

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.