Question

If the Ramirez family deposits $5000 in a savings account at 7.5% interest compounded continuously, how much will be in the account after 15 years?

Answer 1

Answer: The amount is $14794.39 and the interest is $9794.39

Step-by-step explanation: If you deposit $5000 into an account paying 7.5% annual interest compounded yearly , how much money will be in the account after 15 years?

To find amount we use formula:

A-P(1+r/n) n*t

A = total amount

P = principal or amount of money deposited,

r = annual interest rate

n = number of times compounded per year

t = time in years

P=$5000, r=7.5, n=1 and, t=15 years

After plugging the given information we have

A= $5000 (1+0.075/1)^1.15

A= 5000 *1.075^15

A=14794.39

To find interest we use formula  A=P+I'

since A= 14794.39  and P=5000

we have: A=P+I 14794.39=5000+I

I= 14794.39 -5000

I=9794.39

Answer 2

Answer:

The amount is $14794.39 and the interest is $9794.39

Step-by-step explanation: