An original investment of 6000 earns 7 interest compounded c

An original investment of $6000 earns 7% interest compounded continuously. What will the investment worth in 6 years? Round to the nearest cent.

Solution

Formula for compound interest:

amount = principale^(rate*time)

A = Pe^(rt)

= 6000e^(0.07*6)

= 6000*1.52 = $ 9720

Investment would be $ 9720