If 9000 is invested at 7 % compounded continuously, what is the amount after 2 years?

Question

If  9000 is invested at 7 % compounded continuously, what is the amount after 2 years?

Accepted Answer

Step:1 ：Given that the principal amount (P) is 9000, the annual interest rate (r) is 7% or 0.07 in decimal form, and the time (t) is 2 years.Step:2 ：We use the formula for continuous compounding, which is (A = P * e^{rt}), where A is the amount of money accumulated after n years, including interest.Step:3 ：Substitute the given values into the formula: (A = 9000 * e^{0.07*2})Step:4 ：Calculate the value of A to find the final amount.Step:5 ：Final Answer: The amount after 2 years is (boxed{10352.46}).

Answer

Step: 1 ：Given that the principal amount (P) is 9000, the annual interest rate (r) is 7% or 0.07 in decimal form, and the time (t) is 2 years.Step: 2 ：We use the formula for continuous compounding, which is (A = P * e^{rt}), where A is the amount of money accumulated after n years, including interest.Step: 3 ：Substitute the given values into the formula: (A = 9000 * e^{0.07*2})Step: 4 ：Calculate the value of A to find the final amount.Step: 5 ：Final Answer: The amount after 2 years is (boxed{10352.46}).

If $\$ 9000$ is invested at $7 \%$ compounded continuously, what is the amount after 2 years?

Answer

Popular Problems