document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=997782>Question 997782</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose $18000 is initially invested in an account with an APR of 4.5%.<BR>\n" );
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document.write( "If interest is compounded continuously, how much interest does the account earn over the first 10 years?<BR>\n" );
document.write( "Thank you! </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #615826 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=615826\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> continuous interest, i beieve, is modeled by the equation:\r<BR>\n" );
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document.write( "f = p * e^(rn)\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r is the interest rate per time period.<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
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document.write( "you are investing 18,000 at 4.5% per year for 10 years using continuous compounding.\r<BR>\n" );
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document.write( "the formula becomes f = 18,000 * e^(.045*10) which makes f = 28229.61934 </SPAN>\n" );
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