Question

A continuously compounded account starts with $2500 in principal. The annual interest rate is 11.3%. What is the balance after 15 years?
$18472.64
$13616.61
$12455.61
$15245.60
medal rewarded help please !

Answer 1

The compound interest formula for continuous compounding is:
\[A=Pe^{rt}\]Where A is the amount, P is the initial, r is the interest rate, and t is the number of years.

You have the interest rate (.113) the initial ($2500) and the time (15 years) so you can plug in and solve

Answer 2

2500=pe^(.113*15)? @vinnv226

Answer 3

Almost, but A is the answer in this case, you need to plug $2500 in for P, which is the initial amount

Answer 4

Pe is one thing right ?

Answer 5

can you show me step by step how you dot it?

Answer 6

After plugging everything in (see my first response) you'll get this:
\[A=($2500)e^{(.113)(15)}\]