Answer:
The total amount earned is $20,716.
Step-by-step explanation:
The amount of money earned in interest which is compound continuosly after t years is given by the following equation:
[tex]A(t) = Pe^{rt}[/tex]
In which A(t) is the amount of money after t years, P is the principal(initial deposit) and r is the interest rate, as a decimal.
$7775 principal earning 7% compounded continuously
This means that [tex]P = 7775, r = 0.07[/tex]
Then
[tex]A(t) = Pe^{rt}[/tex]
[tex]A(t) = 7775e^{0.07t}[/tex]
After 14 years:
This is A(14).
[tex]A(14) = 7775e^{0.07*14} = 20716[/tex]
The total amount earned is $20,716.
