If 14,000 is invested at 7% annual interest, which is compounded continuously, what is the account balance after 12 years, assuming no additional deposits or withdrawals are made?

Solution

If 14, 000 is invested at 7% annual interest, which is compounded continuously, what is the account balance after 12 years, assuming no additional deposits or withdrawals are made?

Solution

Amount : 32429.14

Solution steps

Translate the problem into an equation:

A = 14000 e^{0.07 \cdot 12}

14000 e^{0.07 \cdot 12} = 32429.13767 \dots

Round to the nearest hundredth:

32429.14

Amount : 32429.14

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