What is the value of $750 invested into an account with an annual rate of 3.25% compounded continuously for 4 years and 3 months?

Question

What is the value of $750 invested into an account with an annual rate of 3.25% compounded continuously for 4 years and 3 months?

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Eva 3 months 2022-02-15T16:59:16+00:00 1 Answer 0 views 0

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    2022-02-15T17:00:50+00:00

    Answer:

    $861.09

    Step-by-step explanation:

    You are going to want to use the compound interest formula, which is shown below.

    [tex]A = Pe^{rt}[/tex]

    A = total

    P = principal amount

    r = interest rate (decimal)

    t = time (years)

    First, change 3.25% into its decimal form:

    3.25% -> [tex]\frac{3.25}{100}[/tex] -> 0.0325

    Next for t, we can use 4.25 since 4 years and 3 months is 4.25 in its decimal form. Now lets plug in the values:

    [tex]A=750e^{(0.0325)4.25}[/tex]

    [tex]A=861.09[/tex]

    Your answer is $861.09

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45:7+7-4:2-5:5*4+35:2 =? ( )