SOLUTION: Suppose that $7000 is invested at an interest rate of 5.8% per year, compounded continuously. What is the balance after 9 years? I need a detailed explanation please! Thank You!

SOLUTION: Suppose that $7000 is invested at an interest rate of 5.8% per year, compounded continuously. What is the balance after 9 years? I need a detailed explanation please! Thank You!

Algebra.Com

Question 276446: Suppose that $7000 is invested at an interest rate of 5.8% per year, compounded continuously. What is the balance after 9 years?
I need a detailed explanation please! Thank You!
Answer by jirehcwe(1) (Show Source): You can put this solution on YOUR website!
balance=7000(1.058)^n
n being the number of years.
1.058 is given by 100%+5.8% and power n is through compounding interest.
balance=7000(1.058)^9
=7000(1.661)
=11627.03
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