One math question! please help
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One math question! please help

[From: ] [author: ] [Date: 12-03-24] [Hit: ]
C. $26,177.D. $21,232.......
Hank invests $20,000.00 in savings account which pays 6 compounded continuously. Consider the following formula, where A is the ending account balance after t years, P is the initial amount of money invested, and r is the interest rate. A=P(2.71)^rt
How much money would he have in his savings account after 3 years?

A. $21,877.48
B. $23,931.20
C. $26,177.71
D. $21,232.84

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A=P(2.71)^rt


your entire formula is wrong.

please allow me do it the way it should be done.

{ you have not stated whether its compounded annually or half yearly etc; so i presume it to be annually compounded]


A = P (1+r/100)^t

so that

A = 20000*(1+.06)^3

= $ 23 820.32


your answer should be along the line of this answer as variations can happen if additional compounding is done.

but for 3 years at 6% p.a compounded annually on a sum of $20000, amount recd = $ 23820.32


BETTER SELECT B as answer.

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$23,931.20
1
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