Answer:
$27,710.24
Step-by-step explanation:
You want to know the value of $6500 earning 7.25% interest compounded continuously for 20 years.
Continuous compounding
The formula for the amount in an account earning interest at rate r compounded continuously is ...
A = P·e^(rt)
where P is the principal invested at rate r for t years.
Your amount is ...
A = $6500·e^(0.0725·20) = $6500·e^1.45 ≈ $27,710.24
The account will be worth about $27,710.24 after 20 years.
