SOLUTION: An investment of $20000 receives interest of 10.5 percent per year compounded continuously.what is the compound amount S if the investment is for a period of 25 years?How much Inte

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: An investment of $20000 receives interest of 10.5 percent per year compounded continuously.what is the compound amount S if the investment is for a period of 25 years?How much Inte      Log On


   

Question 608968: An investment of $20000 receives interest of 10.5 percent per year compounded continuously.what is the compound amount S if the investment is for a period of 25 years?How much Interest will be earned during this period?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi

 $20000 receives interest of 10.5 percent per year compounded continuously.

  S = 20000e%5E%28.105%2A25%29 = 276,091.48

$276,091.48 -$20,000 = $256.091.48 in Interest earned.