Bradford T. answered • 03/16/21

MS in Electrical Engineering with 40+ years as an Engineer

For compounded continuously,

A = Pe^{rt}

For this case,

A = 20000e^{0.111(10)} = 20000(3.037) = $60747.89

Jerry N.

asked • 03/16/21Recently, a certain bank offered a 10-year CD that earns 11.1% compounded continuously.

Use the given information to answer the questions.

(a) If $20,000 is invested in this CD, how much will it be worth in 10 years?

approximately $ __________ (Round to the nearest cent.)

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Bradford T. answered • 03/16/21

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4.9
(29)
MS in Electrical Engineering with 40+ years as an Engineer

For compounded continuously,

A = Pe^{rt}

For this case,

A = 20000e^{0.111(10)} = 20000(3.037) = $60747.89

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