0

# Use the compound interest formula to determine the final value of the given amount.

Use the compound interest formula to determine the final value of the given amount.

\$1800 at 7% compounded continuously for 6 years?

the final value is \$ =

### 3 Answers by Expert Tutors

Tutors, sign in to answer this question.
Michael V. | Great Tutor in Multiple SubjectsGreat Tutor in Multiple Subjects
2
Use the compound interest formula to determine the final value of \$1800 at 7% compounded continuously for 6 years.
• The formula for continuous compound interest is A = Pert, where
• A = Amount after the given time
• P = Principal (initial investment)
• e = natural number (approx. 2.7183)
• r = interest rate (as a decimal)
• t = number of years
P = \$1800, r = 0.07, t = 6
A = Pert
A = (1800)e(0.07)(6)
A = 1800e0.42
A = 2739.53

The final value is \$2,739.53
Steve S. | Tutoring in Precalculus, Trig, and Differential CalculusTutoring in Precalculus, Trig, and Diffe...
5.0 5.0 (3 lesson ratings) (3)
1
\$1800 at 7% compounded continuously for 6 years?

A = 1800e^(0.07*6) = \$2739.53
Parviz F. | Mathematics professor at Community CollegesMathematics professor at Community Colle...
4.8 4.8 (4 lesson ratings) (4)
-1
A = P ( 1 + r ) ^n

A = 1800 * ( 1 + 0.07) ^ 6 =

= 1800 * ( 1.07) ^6 = 2701.31

### Comments

Continuously require A = Pert