Question 252990
continuous compounding formula is


{{{f = p*e^(r*t)}}}


f = future value
p = present amount
r = annual interest rate expressed as a proportion (percent divided by 100% = proportion)
t = time in years
e = the scientific constant that is equivalent to 2.718281828.........


in your problem:


p = $1,100
r = 2.1% / 100% = .021
t = 7


substitute in the formula to get:


{{{f = 1100*e^(.021*7)}}}


answer is:


f = 1274.189359


you will have $1,274.19 at the end of 7 years using continuous compounding.