Answer:
$3,200.57
Step-by-step explanation:
You are going to want to use the continuous compound interest formula, which is shown below.
[tex]A = Pe^{rt}[/tex]
A = total
P = principal amount
r = interest rate (decimal)
t = time (years)
First change 15% to its decimal form:
15% -> [tex]\frac{15}{100}[/tex] -> 0.15
Next, plug in the values into the equation:
[tex]A=1,120e^{0.15(7)}[/tex]
[tex]A=3,200.57[/tex]
The investment will be worth $3,200.57 in 7 years.
