An original investment of 12000 earns 700 interest compounde

An original investment of $12,000 earns 7.00% interest compounded continuously. What will the investment be worth in 1 year? 10 years? After 1 year, the investment will be worth $12870. (Do not round until the final answer Then round to the nearest cent as needed.)

Solution

Dear Student Thank you for using Cehgg !! Total Amount Deposited (P) = 12000 $ Rate Of Interest (\'r) = 7.00% Time period (T) = 1 year When compounded Continuously Amount = P*e^rt = 12000e^ (0.07*1) $ = 12870.09818 $ = 12870.1 $ Now when time period is 10 years Amount = 12000e^ (0.07*10) $ = 24165.03249 $ = 24165 $ Solution Thank you