At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Connect with professionals on our platform to receive accurate answers to your questions quickly and efficiently. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Sarita deposits $1000 in an account paying 3.4% annual interest compounded continuously.
A. What is the balance in Sarita's account after 5 years?


Sagot :

Considering continuous compounding, it is found that the balance of her account after 5 years is of $1,185.3.

What is the equation for continuous compounding?

It is given by:

[tex]A(t) = Pe^{kt}[/tex]

In which:

  • P is the principal.
  • k is the interest rate.
  • t is the time, in years.

In this problem, the parameters are given as follows: P = 1000, r = 0.034, t = 5, hence:

[tex]A(5) = 1000e^{0.034(5)} = 1185.3[/tex]

The balance of her account after 5 years is of $1,185.3.

More can be learned about continuous compounding at https://brainly.com/question/15965736

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.