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30 March, 18:58

How much would sophie have in her account at the end of 10 years if she deposit $2,000 into the account today if she earned 8 percent interest and interest is compounded continuously?

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  1. 30 March, 20:29
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    To calculate the amount that Sophie will have at the end of 10 years given that she deposited $2000 that earns a rate of 8% will be given by:

    A=P (1+r/100) ^n

    where;

    A=future amount

    P=principle

    r=rate

    n=time;

    from our question;

    P=$2000

    r=8%

    n=10 years;

    Thus;

    A=2000 (1+8/100) ^10

    A=2000 (1+0.08) ^10

    A=2000 (1.08) ^10

    A=4,317.85

    Therefore at the end of 10 years Sophie will have $4,317.85
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