Algebra-2

To calculate the ending balance for an investment compounded continuously, we use the formula:

 

where:

is the amount after years,

is the principal (initial investment),

is the annual interest rate (in decimal form),

is the time in years,

is the base of the natural logarithm.

 

Identify the values:

The principal is .

The monthly interest rate is 1%, which means the annual interest rate is .

The time is year.

 

Set up the equation:

Substitute the values into the formula:

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