## Related questions with answers

Question

Find the compound amount and compound interest if $4000 is invested for six years and interest is compounded continuously at the given annual rate. 9%

Solution

VerifiedStep 1

1 of 2$P=\$4000$

$t=6$

$r=9\%=0.09$

Need to find compound amount and compound interest.

Compound amount,

Formula,

$S=Pe^{rt}$

$S=4000 \cdot e^{0.09 \cdot 6}$

$S=4000 \cdot e^{0.54}$

$S\approx 6864$

Therefore, compound amount is $\$6864$.

compound interest$=S-P$

compound interest$=6864-4000$

Therefore, compound interest is $\$2864$.

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