Answered

Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Ask your questions and receive precise answers from experienced professionals across different disciplines. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

You deposit $2500 in an account that pays 12% annual interest rate compounded continuously. Find the balance after 5 years.

Sagot :

Answer:

$4,555

Step-by-step explanation:

According to the scenario, calculation of the given data are as follows,

Total deposit (P) = $2,500

Annual interest (r) = 12%

Time period (t) = 5 years

We can calculate the balance after 5 years if compounded continuously by using following formula,

FV = P[tex]e^{rt}[/tex]

By putting the value, we get

FV = $2,500 × [tex]e^{(0.12 * 5)}[/tex]

= $2,500 ×[tex]e^{.60}[/tex]

= $2,500 × 1.822

= $4,555

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.