Respuesta :
[tex]\bf ~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$1500\\ r=rate\to 4\%\to \frac{4}{100}\dotfill &0.04\\ t=years\dotfill &2 \end{cases} \\\\\\ A=1500e^{0.04\cdot 2}\implies A=1500e^{0.08}\implies A\approx 1624.93[/tex]
If $1500 is deposited during a bank at 4% compounded continuously then we'll get $1624.95 at the tip of two years.
What is compound interest?
It refers to the interest calculated on the principal and accumulated interest. Sum of cash after t years if interest is compounded continuously is P[tex]e^{rt}[/tex].
How to calculate sum after compounding?
The principal amount= $ 1500, rate of interest=4%, time period=2 years.
Sum after 2 years when interest is compounded continuously may be calculated as under:
Sum=1500*[tex]e^{0.04*2}[/tex]
=1500*[tex]e^{0.08}[/tex]
=1500*1.0833 [[tex]e^{0.08}=1.0833[/tex]]
=1624.95
Hence we'll get $1624.95 after 2 years if interest is compounded continuously.
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