SOLUTION: Suppose an investment account is opened with an initial deposit of $10500 earning 6.25% interest, compounded continuously. How much will the account be worth after 25 years?

Algebra ->  Coordinate Systems and Linear Equations  -> Linear Equations and Systems Word Problems -> SOLUTION: Suppose an investment account is opened with an initial deposit of $10500 earning 6.25% interest, compounded continuously. How much will the account be worth after 25 years?      Log On


   

Question 1138574: Suppose an investment account is opened with an initial deposit of $10500 earning 6.25% interest, compounded continuously. How much will the account be worth after 25 years?
Answer by greenestamps(13198) About Me  (Show Source):
You can put this solution on YOUR website!


For continuous compounding,

A+=+Pe%5E%28rt%29

A is the final value
P is the initial principle
r is the (annual) interest rate (as a decimal)
t is time (years)

10500%2Ae%5E%28%28.0625%2A25%29%29

Use a calculator....