Question

Suppose you invest $1600 at an annual interest rate of 7.9% compounded continuously. How much will you have in the account after 10 years?

Answer 1

How often is it compounded? Yearly, monthly, fortnightly, etc.

Answer 2

yearly

Answer 3

The amount A after t years with a principal P and a per annum interest rate of r compounded continuously is:
\[A=Pe ^{rt}\]
So we get:
\[A=1600e ^{0.079\times 10}\]

Answer 4

so it would be A= 3525.43 ?

Answer 5

@kimblack Your answer is correct :)