Find the accumulated amount after 5 year(s) if $7,000 is invested at 9% compounded continuously. Round your answer to the nearest cent.
A) $10,959.77
B) $10,870.79
C) $10,978.19
D) $10,923.56

Question

Find the accumulated amount after 5 year(s) if $7,000 is invested at 9% compounded continuously. Round your answer to the nearest cent. ​
A) $10,959.77
B) $10,870.79
C) $10,978.19
D) $10,923.56

Quizplus · Accepted Answer

The formula for continuous compounding is A = Pe^(rt), where A is the accumulated amount, P is the principal (initial investment), e is the constant 2.71828..., r is the interest rate as a decimal, and t is the time in years. Plugging in the given values, we get A = 7000e^(0.09*5) = $10,978.19, rounded to the nearest cent. Therefore, the best choice is C.

Find the Accumulated Amount After 5 Year(s) If $7,000 Is