Suppose you invest $1500 at an Annual interest rate of 5% compounded continuously. How much will you have in the account after 4

Question

4 years ago

11

years? Round the solution to the nearest dollar.

2 answers:

aleksklad [387] · Answer 1 · 2021-12-05T06:56:12+03:00

5 0

So you know the compound continuously formula is $A = Pe^{rt}$ . Thus, just plug in. $A = (1500)e^{(.05)(4)}$ Plug that into your calc to get $1832.

Flura [38] · Answer 2 · 2021-12-05T08:19:50+03:00

Flura [38]4 years ago

4 0

Answer:

$1832

Step-by-step explanation:

Principal P= $1500

Rate of interest =r = 5 % = 0.05

Time t = 4 years

Formula for continuous compounding: $A=Pe^{rt}$

Substitute the values in the formula

$A=1500e^{0.05 \times 4}$

$A=1832.10413$

So, you will have $1832 in the account after 4 years.