The approximate final value of the amount $900 at 0.99% compounded continuously

babeeb0oL

babeeb0oL

Answered question

2021-09-08

The approximate final value of the amount $900 at 0.99% compounded continuously for 9 years by using the compound interest formula.
The formula for total amount compounded continuously is given by
A=Pert
Where, A is the total amount, P is the principal, r is the annual interest rate, t is the time in years and e is the mathematical constant with approximate value 2.71828.
By substituting the values in the formula, we get the total value of this given amount.

Answer & Explanation

rogreenhoxa8

rogreenhoxa8

Skilled2021-09-09Added 109 answers

Formula used:
The formula for total amount compounded continuously is given by
A=Pert
Where, A is the total amount, P is the principal, r is the annual interest rate, t is the time in years and e is the mathematical constant with approximate value 2.71828.
Calculation:
Step 1: Substitute P=900,r=0.0099, and t=9 in the formula to get A.
A=Pert
=900e0.0099×9
=900×e0.0891
=900×1.0932
=$983.87
Conclusion:
Using the compound interest formula, the final value of the amount $900 at 0.99% compounded continuously for 9 years was found to be $983.87.

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