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aev [14]
3 years ago
9

Peter puts 8000 into a savings account that pays 6% interest, compounded continuously. After 5 years, Peter will have ( $)

Mathematics
1 answer:
guajiro [1.7K]3 years ago
5 0
We have to calculate the amount of money Peter will have in his account after 5 years. Formula for the amount after t years with interest compounded continuously : A = P * e ^(rt)
We know that r = 0.06, t=5, e = 2.71 and p= $8,000 
A = 8,000 * 2,718 ^(0.06 * 5) = 8,000 * 2,718 ^ (0.3) = 8,000 * 1.3488158  = 10,798.53 so the answer is 10,798.53
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