Question

You invested $4,200 into an account that pays an interest rate of 3.5% compounded continuously. What is the balance of your account in 5 years?. Use formula
A=Pert

Answer 1

Answer:

$A=\ 5003.2$

Step-by-step explanation:

Use the exponential growth formula

$A = Pe ^ {rt}$

Where A is the final amount in the account, P is the initial amount, r is the growth rate and t is the time in years

In this problem

We know that

$P=4,200\\\\r=\frac{3.5\%}{100\%}= 0.035\\\\ t=5\ years$

So

$A = 4,200e^{0.035t}$

Finally after 5 years the balance of the account is:

$A=\ 5003.2$