If 8000 is invested in an account that cams interest compoun

If $8000 is invested in an account that cams interest compounded continuously. How much will the investment be worth in 25 years if the investment cams an annual interest rate of. 3%: 6%:

Solution

a)

r = 3/100 = 0.03

A = P*e^(r*t)

=8000*e^(0.03*25)

=$16936

Answer: $16936

b)

r = 6/100 = 0.06

A = P*e^(r*t)

=8000*e^(0.06*25)

=$35854

Answer: $35854