Question

15 points and brainliest!! Please help! You deposit $5000 in an account earning 5% interest compounded continuously. How much will you have in the account in 15 years?

Answer 1

Answer:

$ 10394.64

Step-by-step explanation:

(Assuming the compound is by year)

The equation for compound interest is A = P(1+r/n)^nt, where A is the amount that comes out, P is the amount put in, r is the interest, n is the # of times interest is compounded per year, and t is the number of years.

Plugging in the numbers we know, we get A = 5000*(1 + 0.05)¹⁵.

That is 5000*1.05¹⁵ ≈ $10394.64

(I find this quite unreasonably large, but since 1.05¹⁵ > 2, it checks out.)

Answer 2

5000, 0.05, 15 Concert 5% to a decimal