College Algebra (10th Edition)

Published by Pearson
ISBN 10: 0321979478
ISBN 13: 978-0-32197-947-6

Chapter 6 - Section 6.7 - Financial Models - 6.7 Assess Your Understanding - Page 475: 13



Work Step by Step

We know the following equation for continuously compounding interest: $$A=Pe^{rt}$$ Where: P is the principal. A is the amount at the given time. r is the rate, expressed as a decimal. t is the time, in years. Thus, we obtain: $$A=1000e^{.11*2} \\ A= 1246.07$$
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