SOLUTION: If Hannah places $ 7500 into an account earning 7.75% interest compounded continuously, how much will she have after 16 years?

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Question 1002417: If Hannah places $ 7500 into an account earning 7.75% interest compounded continuously, how much will she have after 16 years?
Found 2 solutions by lwsshak3, ikleyn:
Answer by lwsshak3(11628) About Me  (Show Source):
You can put this solution on YOUR website!
If Hannah places $ 7500 into an account earning 7.75% interest compounded continuously, how much will she have after 16 years?
Compound interest formula for continuous compounding: A=Pe^rt, P= initial investment, r=interest rate, A=amt after t-years
A=7500.e^(.0775*6)=7500*=$11,940.11(rounded)

Answer by ikleyn(53878) About Me  (Show Source):
You can put this solution on YOUR website!
.
If Hannah places $ 7500 into an account earning 7.75% interest compounded continuously,
how much will she have after 16 years?
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        Calculations in the post by @lwsshak3 are incorrect (irrelevant) and produce wrong answer.
        I came to bring a correct solution.


Compound interest formula for continuous compounding: A = P%2Ae%5E%28rt%29,

where P is an initial investment, r is an interest rate, A is the future value after t years.

A = 7500%2Ae%5E%28.0775%2A16%29 = 7500%2A2.71828%5E%280.0775%2A16%29 = $25,917.08 rounded to the closest cent.     ANSWER

Solved correctly.