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lana [24]
3 years ago
12

If the Laffite family deposits $8500 in savings account at 6.75% interest, compounded continuously, how much will be in the acco

unt after 25 years

Mathematics
1 answer:
vitfil [10]3 years ago
4 0

Answer:

Option b

Step-by-step explanation:

We have a compound interest problem. With an annual interest rate of 0.675 and an initial payment of 8500, with t = 25 years

Then you must use the annual compound interest formula, which is represented by a growing exponential function:

y = e ^{ht}

Where:

h is the interest rate of 0.675

y is the money in the savings account as a function of time

Then substitute the values in the formula and we have:

y = e ^{0.675(25)}

y = 45,950.57

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