Arjun invests $3,340 in a retirement account with a fixed annual interest rate of 6% compounded continuously. What will the account balance be after 20 years.

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Social Studies

Branson Kerr

9 April, 01:23

Arjun invests $3,340 in a retirement account with a fixed annual interest rate of 6% compounded continuously. What will the account balance be after 20 years.

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Reese · Answer 1

= $ 11,089.19

Explanation:

Using the formula A = Pe^ (r*t).

Where A is the accrued amount,

r is the annual nominal rate of interest as a decimal,

P is the principal amount, and

t is the time involved in years

Therefore;

A = Pe^ (r*t).

r = 0.06; P = 3340; t = 20.

A = 3340 * e^ (0.06*20)

= 11,089.19

= $11,089.19