1) with this exercise you have the following data , initial capital C = $ 2,658 , rate of interest i= 9 % , time in years of n = 15
2) with the formula M = C(1+i) ^n, can obtain the account balance M, at 15 years
M = 2,658(1+0.09)^15 = $9,681
Answer:
The amount balance be after 15 years is $10253.03.
Step-by-step explanation:
Given : Jasmine invests $2,658 in a retirement account with a fixed annual interest rate of 9% compounded continuously.
To find : What will the account balance be after 15 years?
Solution :
The formula of compounded continuously is
[tex]A=Pe^{rt}[/tex]
Where, A is the amount
P is the principal P=$2658
r is the rate of interest r=9%=0.09
t is the time t=15 years
Substitute all the values in the formula,
[tex]A=Pe^{rt}[/tex]
[tex]A=2658\times e^{0.09\times15}[/tex]
[tex]A=2658\times e^{1.35}[/tex]
[tex]A=2658\times 3.857[/tex]
[tex]A=10253.03[/tex]
Therefore, The amount balance be after 15 years is $10253.03.
