Question

If you deposit $14,000 in an account that pays 7.47% annual interest compounded continuously. Remember A=Pe^rt.

Answer 1

Answer:

The balance after 1 year, 5 years, 10 years, 25 years are 15085.85, 20339.35, 29549.22 and 90609.34 respectively.

Step-by-step explanation:

It is given that the principle amount is $14,000 and interest rate is 7.47%.

The formula for amount is

$A=Pe^{rt}$

Where, P is principle, r is rate of interest and t is time in years.

Substitute P=14000 and r=0.0747 in the above equation.

$A=14000e^{0.0747t}$         ..... (1)

Substitute t=1 in equation (1) to find the balance after 1 year.

$A=14000e^{0.0747(1)}=15085.851678\approx 15085.85$

Substitute t=5 in equation (1) to find the balance after 5 year.

$A=14000e^{0.0747(5)}=20339.3478896\approx 20339.35$

Substitute t=10 in equation (1) to find the balance after 10 year.

$A=14000e^{0.0747(10)}=29549.2194696\approx 29549.22$

Substitute t=25 in equation (1) to find the balance after 25 year.

$A=14000e^{0.0747(25)}=90609.3428426\approx 90609.34$

Therefore the balance after 1 year, 5 years, 10 years, 25 years are 15085.85, 20339.35, 29549.22 and 90609.34 respectively.

Answer 2

Answer: After 1 year = $15085.85168

After 5 years = $20339.34789

After 10 years = $29549.21947

After 25 years = $90609.34284

Step-by-step explanation:

14000e^.0747 (however many years)