The Sharma's earn $$ 12000$ per year on their small internet business. If this is viewed as a continuous income stream, how much would this money accrue to in 7 years at $3.95 %$ interest compounded continuously?

Round your answer to the nearest dollar and do not use commas in the answer blank.
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Answer

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Answer

The final amount accrued in 7 years at $3.95 %$ interest compounded continuously is $15822$

Steps

Step 1 ：Use the formula for continuous compounding interest: $A = P \cdot e^{r t}$

Step 2 ：Let $P = 12000$ , $r = 0.0395$ , and $t = 7$

Step 3 ：Calculate the amount accrued: $A = 12000 \cdot e^{0.0395 \cdot 7}$

Step 4 ：Round the final answer to the nearest dollar: $A \approx 15822$

Step 5 ：The final amount accrued in 7 years at $3.95 %$ interest compounded continuously is $15822$