Algebra-2

To find the ending balance for an investment with continuous compounding, we use the formula for continuously compounded interest:

 

where:

is the amount after years,

is the initial investment (principal),

is the annual interest rate (in decimal form),

is the number of years,

is the base of the natural logarithm.

 

Identify the values:

The principal is .

The annual interest rate is (15% as a decimal).

The time is year (12 months).

 

Set up the equation:

Substitute the values into the formula:

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