Sarah invested $2,500 in an account paying an interest rate of 2.1% compounded continuously. Assuming no deposits or withdrawals

Question

1 month ago

7

are made, how much money, to the nearest hundred dollars, would be in the account after 14 years?

1 answer:

Svet_ta [12.7K] · Answer 1 · 2026-04-03T05:48:33+03:00

Response:

$3,000

Detailed breakdown:

This scenario is centered around compound interest, with the formula for compound interest defined as

Provided Data

A = final amount =?

P = initial principal balance = $2,500

r = interest rate = 2.1%= 0.021

t = number of time units passed= 14 years

By inserting our data into the compound interest equation, we can determine the final amount

$A= 2500(1+0.021)^1^4\\A= 2500(1.021)^1^4\\A= 2500*1.3377\\A= 3344.25\\$

Therefore, rounding to the nearest hundred gives us an account balance of $3,000