Money invested into an account earns 7% interest compounded continuously. How much is an initial investment of 9,500 worth in 14 years? Round to the nearest cent.

Solution

Money invested into an account earns 7% interest compounded continuously. How much is an initial investment of 9, 500 worth in 14 years? Round to the nearest cent.

Solution

Amount : 25312.33

Solution steps

Translate the problem into an equation:

A = 9500 e^{0.07 \cdot 14}

9500 e^{0.07 \cdot 14} = 25312.33429 \dots

Round to the nearest hundredth:

25312.33

Amount : 25312.33

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