If you invest $10,000 at 2.75% interest compounded continuously, how much will you have
in 8 yrs?
Guide On Rating System
Vote
To solve this problem, we can use the formula for continuous compound interest:
A = P * e^(rt)
Where:
A = the final amount (or the amount you will have after 8 years)
P = the principal (the initial amount invested)
e = Euler's number, approximately equal to 2.71828
r = the interest rate
t = the time in years
Given:
P = $10,000
r = 2.75% = 0.0275 (expressed as a decimal)
t = 8 years
Plugging in these values into the formula, we have:
A = 10000 * e^(0.0275 * 8)
Using a calculator, we find:
A ≈ 10000 * 2.1186
A ≈ $21,186
Therefore, you will have approximately $21,186 after 8 years with an initial investment of $10,000 at an interest rate of 2.75% compounded continuously.
Got a question with my answer?
Cheapmath.com is completely free!
Asking question is free.
Getting answers is free.
+99