Answer:
The amount after three year is 617934.1302
Explanation:
Complete question
A person places $530,000 in an investment account earning an annual rate of 5.25%, compounded continuously. Using the formula V = Pe^{rt}V=Pe rt , where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural logarithm, and r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 3 years
Solution
The formula for calculating compound interest is
[tex]A = p (1 + \frac{r}{n})^{nt}[/tex]
Substituting the given values we get -
[tex]A = 530,000 (1 + \frac{5.25}{100})^3\\A = 530,000 * ( 1+ 0.0525)^3\\A = 530,000 * ( 1.0525)^3\\A = 617934.1302[/tex]
The amount after three year is 617934.1302
