QuestionSuppose that $P$ dollars in principal is invested for $t$ years at the given interest rates with continuous compounding. Determine the amount that the investment is worth at the end of the given time period. $P=\$ 6000, t=14 \mathrm{yr}$ (a) $1 \%$ interest (b) $3 \%$ interest (c) $6.5 \%$ interest
Part: $0 / 3$
Part 1 of 3 (a) At $1 \%$ interest rate, the investment will be worth $\$ \square$ at the end of 14 yr .

Studdy Solution
Calculate the amount using the formula. First, calculate the exponent:
$0.01 \times 14 = 0.14$
Now, calculate $e^{0.14}$ using a calculator:
$e^{0.14} \approx 1.15027$
Finally, calculate the amount $A$ :
$A = 6000 \times 1.15027 \approx 6901.62$
The investment will be worth approximately $\boxed{6901.62}$ dollars at the end of 14 years.

View Full Solution - Free

Was this helpful?

Get Studdy

Scan QR code with your device to get Studdy on iOS or Android

QR code

Studdy solves anything!

Download the app

Start learning now

Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

Parents Influencer program Contact Policy Terms