You invest $17,804 in a CD that has a 6.275% annual interest rate, compounded continuously. How much will you have in 25 years?Round to the nearest cent.

Answer :

Answer:

R = 3.813% per year.

Step-by-step explanation:

  • A = Accrued amount (principal + interest)
  • P = Principal amount
  • r = Annual nominal interest rate as a decimal
  • R = Annual nominal interest rate as a percent
  • r = R/100
  • n = number of compounding periods per unit of time
  • t = time in decimal years; e.g., 6 months is calculated as 0.5 years. Divide your partial year number of months by 12 to get the decimal years.
  • I = Interest amount
  • ln = natural logarithm.

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