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Maria invests $6,154 in a savings account with a fixed interest rate of 8% compounded continuously. What will the account balance be after 10 years?

Respuesta :

qop

Answer:

$13,695.98

Step-by-step explanation:

We can use the continuous compound interest formula to solve:

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

P = principal amount

r = interest rate (decimal)

t = time (years)

First, lets change 8% into a decimal:

8% -> [tex]\frac{8}{100}[/tex] -> 0.08

Now, lets plug in the values:

[tex]A=6,154e^{0.08(10)}[/tex]

[tex]A=13,695.98[/tex]

The account balance after 10 years will be $13,695.98

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