Determine the amount of money you would have if you invested $15,000 dollars for 11 years at 3% annual interest compounded continuously. Please Show Your Work
Mathematics · Middle School · Tue Nov 03 2020
llm
Answered on
Given:
Principal amount (P)= $ 15,000
Rater ( r ) = 3% or 0.03
Compounded annually (n) = 1
Term (t) = 12
Formula for compound interest.
A = P(1 + r/n)^nt
Solution
Substitute the given values to the formula for compound interest.
A = P(1 + r/n)^nt
A = $15,000(1 + 0.03/1)^(1)(12)
A = $15,000(1.03)^12
A = $15,000(1.4257)
A= $21,386.41
Final answer:
A= $21,386.41