Find the compound amount and the amount of interest earned by the deposit below.\7, 000 at 6.89% compounded continuously for 8 years. What is the compound amount?

Solution

Solution

Interest : 5147.34

Amount : 12147.34

Solution steps

Translate the problem into an equation:

12147.34 = 7000 + I

Solve for

I, 12147.34 = 7000 + I : I = 5147.34

Interest : 5147.34

Amount : 12147.34

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