Question

Use the continuous compound interest formula to find the indicated value

Answer 1

$\bf ~~~~~~ \textit{Continuously Compounding Interest Earned Amount}\\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \ 7000\\ r=rate\to 5.05\%\to \frac{5.05}{100}\to &0.0505\\ t=years\to &5 \end{cases} \\\\\\ A=7000e^{0.0505\cdot 5}\implies A=7000e^{0.2525}$