Samuel invested $28,000 in an account paying an interest rate of 5% compounded continuously. Assuming no deposits or withdrawals are made, h

Question

Samuel invested $28,000 in an account paying an interest rate of 5% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 5 years?

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Katherine 1 week 2021-09-10T11:25:24+00:00 1 Answer 0

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    2021-09-10T11:27:18+00:00

    Answer:

    $35,953 would be in the account after 5 years.

    Step-by-step explanation:

    The amount of money earned in interest which is compound continuosly after t years is given by the following equation:

    A(t) = Pe^{rt}

    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.

    Samuel invested $28,000 in an account paying an interest rate of 5% compounded continuously.

    This means that P = 28000, r = 0.05

    So

    A(t) = Pe^{rt}

    A(t) = 28000e^{0.05t}

    How much money, to the nearest dollar, would be in the account after 5 years?

    This is A(5)

    A(t) = 28000e^{0.05t}

    A(5) = 28000e^{0.05*5} = 35952.7

    Rounding up to the nearest dollar

    $35,953 would be in the account after 5 years.

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45:7+7-4:2-5:5*4+35:2 =? ( )