Compound Interest and Continuously Compounded

Damara invests $3500 at 2% compounded continuously for 5 years. How much will she have in her account after 5 years?

If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?

• $1,225,54

• $2,225.54

• $22,255.40

• $225.54

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

What does the t stand for in this formula?

• time in weeks

• time in months

• time in years

• the number of times interest is compounded per year

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

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?

Olivia would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years.

• $15,415.94

• $15,683.28

• $15,927.56

• $16,109.05