If the Laffite family deposits $8500 in a savings account at 6.75% interest, compounded continuously, how much will be in the account after 25 years?

Question

Chum

Mathematics

22 January, 20:40

If the Laffite family deposits $8500 in a savings account at 6.75% interest, compounded continuously, how much will be in the account after 25 years?

+5

Answers (2)

Know the Answer?

Konnor Blake · Answer 1

P = A (1+i) ⁿ, where A is the initial capital, I = interest rate in% & P the amount after a period of " n " years:

P = 8500 (1+6.75%) ²⁵

P = 8500 (1.067) ²⁵

P = $43,512.7

Brady Rowe · Answer 2

With compounded continuously the formula is

A=pe^rt

A future value?

P present value 8500

R interest rate 0.0675

T time 25 years

E constant

A=8,500*e^ (0.0675*25)

A=45,950.57