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arlik [135]
3 years ago
9

A person places $5540 in an investment account earning an annual rate of 2.5%, compounded continuously. Using the formula V = Pe

^{rt}V=Pe rt , where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural logarithm, and r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 20 years.
SAT
1 answer:
Vesnalui [34]3 years ago
8 0

Answer:

$9,133.92

Explanation:

V = P*e^(rt)

V = 5540 * e ^ (0.025*20)

V = 5540 * e^(0.5)

V = 5540 * 1.648721

V = 9,133.9158

approximately $9,133.92

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