3 years ago

You have $380,000

Mathematics

1 answer:

lesantik [10]3 years ago

5 0

Answer:

If the capitalization method is continuous, the interest obtained will be $104986.99

Step-by-step explanation:

Cn = Co * (1 + i)^n

Co = 380,000

i = 0.05

n = 5

So:

Cn =380,000 * (1+.05/1)^(1*5)

Cn = 380,000 * (1+.05)^5

Cn = 380,000 * (105)^5

Cn = 380,000 * (1.2763)

Cn = 484,986.99

Cn - Co = interest acumulated:

484,986.99-380,000 = $104986.99

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