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Popular Word Problems >

65. An account with an initial deposit of $6,500 earns 7.25% annual interest, compounded continuously. How much will the account be worth after 20 years?

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Solution

Solution

Amount:27710.24
Solution steps
Translate the problem into an equation:A=6500e0.0725⋅20
6500e0.0725⋅20=27710.24434…
Round to the nearest hundredth:27710.24
Amount:27710.24

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