SOLUTION: if $8,000 is invested at an interest rate of 7% per year, compounded comtinuously, find the amount of the investment at the end of 12 years

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Question 1163080: if $8,000 is invested at an interest rate of 7% per year, compounded comtinuously, find the amount of the investment at the end of 12 years
Answer by ikleyn(52884) About Me  (Show Source):
You can put this solution on YOUR website!
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The formula for the future value of this investment is


    FV = 8000%2Ae%5E%280.07%2At%29,


where t is the time in years.  So, in 12 years the value of the investment will be


    FV = 8000%2A2.71828%5E%280.07%2A12%29 = 18530.93 dollars.    ANSWER

Solved.

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To see many other similar solved problems on continuously compounded accounts, see the lesson
    - Problems on continuously compounded accounts
in this site.

After reading this lesson, you will tackle such problems on your own without asking for help from outside.


Also,  you have this free of charge online textbook in ALGEBRA-I in this site
    - ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lesson is the part of this online textbook under the topic "Logarithms".


Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.