## $1250 is deposited in an account that pays 6.5% annual interest, compounded continuously. What is the balance after 8 year

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## Answers ( )

Answer: the balance after 8 years is

$2103

Step-by-step explanation:

The formula for continuously compounded interest is

A = P x e (r x t)

Where

A represents the future value of the investment after t years.

P represents the present value or initial amount invested

r represents the interest rate

t represents the time in years for which the investment was made.

e is the mathematical constant approximated as 2.7183.

From the information given,

P = 1250

r = 6.5% = 6.5/100 = 0.065

t = 8 years

Therefore,

A = 1250 x 2.7183^(0.065 x 8)

A = 1250 x 2.7183^(0.52)

A = $2103 to the nearest dollar