Answered

Kim invests $3,872 in a savings account
with a fixed annual interest rate
of 6%
compounded continuously. What will the
account balance be after 11 years?

Verified Answer :

chasseurdange

Answer:The account balance will be approximately $7,498.46 after 11 years

Step-by-step explanation:

Calculate the account balance using the continuous compound interest formula: A = P * e^(rt), where A is the account balance, P is the principal amount ($3,872), e is the base of the natural logarithm (approximately 2.71828), r is the annual interest rate (6% or 0.06), and t is the time in years (11)

2 Substitute the values into the formula: A =$3,872 x e^(0.06 x 11)

3 Calculate the exponent: 0.06 x 11 = 0.66

4 Calculate e^(0.66) = 1.937

5 Multiply the principal amount by the calculated value: $3,872 x 1.937 = $7,498.464

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