Suppose you invest $2500 at an annual interest rate of 3% compounded continuously. How much will you have in the account after 7 years? Round the solution to the nearest dollar.

Question

anonymous · Answer

ok so 2500+3x

anonymous · Answer

annual= every year

anonymous · Answer

wait other way around 2500x+3

anonymous · Answer

wait one sec @TheSmartOne

tkhunny · Answer

Compounded CONTINUOUSLY.  So far, not even close.  Do you have a formula for that?

anonymous · Answer

choices
a	$3297
b	$3084
c	$3592
d	$3025

anonymous · Answer

well that would of been better to know lol :) I got D because i multiply 2500(0.21) and added 525 from what i got

tkhunny · Answer

Compounded Annually  $2500(1 + 0.03)^{7} = 3,074.68$
Compounded Semi-Annually  $2500(1 + 0.03/2)^{7*2} = 3,079.39$
Compounded  Quarterly $2500(1 + 0.03/4)^{7*4} = 3,081.78$
Compounded  Monthly $2500(1 + 0.03/12)^{7*12} = 3,083.39$
Compounded  Weekly $2500(1 + 0.03/52)^{7*52} = 3,084.01$
Compounded  Daily $2500(1 + 0.03/365)^{7*365} = 3,084.17$

What is the end of this process?

tkhunny · Answer

$2500e^{0.03\cdot 7} = 3,084.20$ -- et voilà!