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Question
Suppose an investment account is opened with an initial deposit of $12,000 earning 7.2% interest compounded continuously. How much will the account be worth after 30 years?
Solution
VerifiedStep 1
1 of 3Remember the formula for a continuous growth/decay is represented by
where is the initial value, is the continuous growth rate and is the elapsed time.
Remember that if , the formula shows continuous growth, while if , then the formula shows continuous decay.
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