Find the amount of money accumulated if you invested $25,000 at 4.3% interest for 8 years compounded continuously.

Question

Drew Wheeler

Mathematics

29 June, 10:45

Find the amount of money accumulated if you invested $25,000 at 4.3% interest for 8 years compounded continuously.

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Answers (1)

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Alexia Hutchinson · Answer 1

The appropriate formula for the accumulated amount (A) for a given principal (P), interest rate (r), and time period (t) is ...

... A = P·e^ (rt)

Filling in the given numbers and doing the arithmetic, we get

... A = $25,000·e^ (.043·8) ≈ $35,264.46