Answer
For 1% rate $\approx\$7736.2$
For 2% rate $\approx\$8549.82$
For 3% rate $\approx\$9449.01$
For 4% rate $\approx\$10442.77$
For 5% rate $\approx\$11541.05$
For 6% rate $\approx\$12754.83$
Work Step by Step
*For a quick review*
For Continuously Compounded Interest we have the following formula (Also explained in this chapter, 4.2):
$A(t)=Pe^{rt}$
$t$ - number of years
$r$ - interest rate per year
$P$ - principal
$A(t)$ - amount of money after $t$ years
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We have an investment of $\$7000$ and $t=10$ years, so the formula will get the following form:
$A(r)=7000e^{10r}$
$A(0.01)=7000e^{10\times0.01}=7000e^{0.1}\approx\$7736.2$
$A(0.02)=7000e^{10\times0.02}=7000e^{0.2}\approx\$8549.82$
$A(0.03)=7000e^{10\times0.03}=7000e^{0.3}\approx\$9449.01$
$A(0.04)=7000e^{10\times0.04}=7000e^{0.4}\approx\$10442.77$
$A(0.05)=7000e^{10\times0.05}=7000e^{0.5}\approx\$11541.05$
$A(0.06)=7000e^{10\times0.06}=7000e^{0.6}\approx\$12754.83$
