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

\$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:

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

So

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

This is A(5)

Rounding up to the nearest dollar

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