May 11: Continuously Compounded Interest DAY 1

Willie invests $8,515 in a retirement account with a

fixed annual interest rate of 5% compounded continuously. What will the account balance be after 20 years?

• $22,017.32

• $23,146.17

• $20,021.95

• $20,943.52

Mark invests $3,285 in a retirement account with a

fixed annual interest rate of 7% compounded continuously. What will the account balance be after 18 years?

• $12,420.73

• $13,321.33

• $12,671.64

• $11,581.01

Jessica invests $3,948 in a savings account with a

fixed annual interest rate of 9% compounded continuously. What will the account balance be after 11 years?

• $8,786.44

• $10,056.40

• $10,624.99

• $8,357.92

Sumalee invests $6,227 in a savings account with a

fixed annual interest rate of 8% compounded continuously. What will the account balance be after 6 years?

• $10,685.57

• $11,011.00

• $10,369.77

• $10,063.30

Adam invests $5,208 in a savings account with a

fixed annual interest rate of 8% compounded continuously. What will the account balance be after 8 years?

• $9,876.87

• $10,699.49

• $9,489.59

• $8,803.91

Chelsea invests $2,709 in a savings account with a

fixed annual interest rate of 8% compounded continuously. What will the account balance be after 6 years?

(a)  

What does P represent in A=Pe^{rt ?}

• Mr. Bannister

• Part

• Principal

In the formula A= Pe^rt

T is time in ...

• Months

• Years

• Days

• Weeks

• Decades