suppose you invest 17000 at an annual interest rate of 3.9% compounded continuously? how much will u have in the account after 2.5 years?
Whqt do you mean by compounding "continuously?
Daily? Every hour?
If there is daily compounding, the investment increases by a factor
[1 + (0.039/365])^365 = 1.039768 per year. After 2 1/2 years that factor becomes
1.039768)^2.5 = 1.102406
Multiply that by the initial 17,000 and you have $18,740.90
To calculate the amount you will have in the account after 2.5 years when investing $17,000 at an annual interest rate of 3.9% compounded continuously, you can use the continuous compound interest formula:
A = P * e^(rt)
Where:
A is the final amount in the account
P is the principal amount (initial investment)
e is the mathematical constant approximately equal to 2.71828
r is the interest rate (as a decimal)
t is the time in years
Let's plug in the values:
P = $17,000
r = 3.9% = 0.039 (as a decimal)
t = 2.5 years
A = $17,000 * e^(0.039 * 2.5)
Now, I'll calculate the result for you.