Question

Find the amount that results from investing $5000 at 3% compounded continuously for 5 years. Round your

Answer 1

Answer:

The amount that results from investing $5000 at 3% compounded continuously for 5 years is $5800

Step-by-step explanation:

We are given:

Principal Amount (P) = $5000

Years (t) = 5

Rate (r) = 3% or 0.03

We need to find New Amount (A)

The formula used is: $A=P(1+\frac{r}{n})^{nt}$

Since amount is compounded continuously so n=1

Putting values and finding A

$A=P(1+\frac{r}{n})^{nt}\\A=5000(1+\frac{0.03}{1})^{1*5}\\A=5000(1+0.03)^5\\A=5000(1.03)^5\\A=5000(1.16)\\A=5800$

So, New Amount (A) = $5800

The amount that results from investing $5000 at 3% compounded continuously for 5 years is $5800