Answer:
$1808263
Step-by-step explanation:
We're given with the below information:-
Initial price of the building = Principal amount (P) = $590000
Rate of interest (r) = 14% = 0.14
Time in years (t) = 2020 - 2012 = 8
The formula to calculate the final amount where interest is continuously compounded each year is :-
[tex]A = Pe^{rt}[/tex] [e is the mathematical const = 2.71828]
Plugging in the values of P, e, r, and t in the above formula, we get
[tex]A = 590000*2.71828^{0.14*8}[/tex]
=> A= 1808262.6
=> A = $1808263 (rounded off to the nearest whole dollar)
So, she expect to sell the building in 2020 for an amount of $1808263
