Problema Solution

If you invest $5,250 in an account paying 6.38% compounded continuously, how much money will be in the account at the end of

(A) 6.25 years? (B) 17 years?

Answer provided by our tutors

P = 5,250

i = 0.0638

 

A.  Compounded continuously for 6.25 years:

 

(5250)e^(0.0638 * 6.25) = $7,822.30

 

B.  Compounded continuously for 17 years:

 

(5250)e^(0.0638 * 17) = $15,530.85