Answer:
$1447.73
Step-by-step explanation:
Use the equation A = Pe^rt
P = starting amount
r = rate
t = time
A = 625e^0.07 * 12
A = 1447.73
Answer:
It will be worth approximately $ 1447.73.
Step-by-step explanation:
Since, the amount formula in compounded continuously,
[tex]A=Pe^{rt}[/tex]
Where,
P is the principal amount,
r is the rate per period,
t is the number of periods,
e is Euclid number,
Here, P = $ 625,
r = 7% = 0.07,
t = 12 years,
Hence, the amount after 12 years would be,
[tex]A=625 e^{0.07\times 12}=625 e^{0.84}=\$ 1447.72936049\approx \$ 1447.73[/tex]
