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If you invest $1500 at a 7% interest rate compounded continuously for five years, how much money will you have after five years? Round to the nearest cent.

Respuesta :

For this question, we use the compound interest formula:

[tex]M=M_0(1+i)^t[/tex]

where M_0 is the initial amount, i is the interest and t is the number of times the interest is applied. Substituting M_0=$1500, t=5, and i=0.07 we get:

[tex]M=1500(1+0.07)^5\approx1500\cdot1.102551\approx2103.83[/tex]

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