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Suppose you invest $1500 at an Annual interest rate of 5% compounded continuously. How much will you have in the account after 4 years? Round the solution to the nearest dollar.

Respuesta :

awesome1st
So you know the compound continuously formula is [tex]A = Pe^{rt} [/tex]. Thus, just plug in. [tex]A = (1500)e^{(.05)(4)} [/tex] Plug that into your calc to get $1832.

Answer:

$1832

Step-by-step explanation:

Principal P= $1500

Rate of interest =r = 5 % = 0.05

Time t = 4 years

Formula for continuous compounding:[tex]A=Pe^{rt}[/tex]

Substitute the values in the formula

[tex]A=1500e^{0.05 \times 4}[/tex]

[tex]A=1832.10413[/tex]

So, you will have $1832 in the account after 4 years.

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