Question

Jane plans to invest $500 at 8.25% interest, compounded continuously. After 14 years, how much money has she accumulated? Has her money doubled or tripled?

Answer 1

How much is it after the first year?

Answer 2

I don't know? I have to use a formula

Answer 3

500+500 x 8.25 / 100
Which is also
500 (1+0.0825)
The next year you get
500 (1+0.0825) (1+0.0825) = 500 (1+0.0825)^2

Answer 4

500 (1+0.085)^2=500 x 1.1718

Answer 5

After the 3rd year it is
500 (1+0.0825)^3,
After 14 years it is
500 (1+0.085)^14

Answer 6

so using this formula A= Pe^rt ?

Answer 7

Here in Austria we use different letters, but I think you got it