Question

Kristen invest $5428 in a retirement account with a fixed annual interest rate of 5% compounded continuously. What will the balance be after 16 years?

Answer 1

Answer:$11848.64

Step-by-step explanation:

Let $P$ be the principal.

Let $A$ be the amount after $t$ years.

Let $t$ be the time period.

Let $i$ be interest rate.

Given,

$P=5428\\i=5\%\\t=16$

$A=P(1+\dfrac{i}{100})^{t}$

$A=5428\times (1+\frac{5}{100})^{16}=5428\times (1.05)^{16}=5428\times 2.182=11848.64$