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Jason invests $8,264 in an account that earns an annual interest rate of 4%. What will be the balance of the account in 18 years if the interest is compounded continuously?

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ProfessorAlvarez

[tex]\text{Use the growth formula:}\,A=P(1+r)^t\\\\\text{Plug in your values}}\\\\A=8,264(1+0.04)^18\\\\\text{Solve:}\\\\A=8,264(1+0.04)^18\\\\A=8,264(1.04)^18\\\\A=8,264(2.0258)\\\\\boxed{\$16,741.35}[/tex]

[tex]^*\text{note: answer is rounded to the nearest hundredths place}[/tex]

abidemiokin

The balance of the account in 18 years if interest is compounded continuously is $16.741.34

The compound interest formula is expressed as:

A = P(1+r/n)^nt

Given the following parameters

P = $8264

r = 4% = 0.04

t = 18 years

n = 1(continous)

Substitute the given parameters into the formula

A = 8264(1+0.04)^18

A = 8264(1.04)^18

A = 8264(2.0258)

A = 16,741.34

Hence the balance of the account in 18 years if the interest is compounded continuously is $16.741.34

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