What will be the amount in an account with initial principal $\$ 6000$ if interest is compounded continuously at an annual rate of $5.25 \%$ for 7 years?
A) $\$ 6000.00$
B) $\$ 6323.42$
C) $\$ 2789.80$
D) $\$ 8664.72$

Question

Quizplus · Accepted Answer

The formula for continuous compounding is $A = Pe^{rt}$, where $A$ is the amount, $P$ is the principal, $r$ is the annual interest rate (as a decimal), $t$ is the time in years, and $e$ is the base of the natural logarithm (approximately 2.71828). Plugging in the given values: $A = 6000e^{0.0525 \times 7}$, we find $A \approx \$8664.72$.

What Will Be the Amount in an Account with Initial $6000\$ 6000$6000

What Will Be the Amount in an Account with Initial $\$ 6000$