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You invested $4,200 into an account that pays an interest rate of 3.5% compounded continuously. What is the balance of your account in 5 years?. Use formula
A=Pert

Respuesta :

luisejr77

Answer:

[tex]A=\$5003.2[/tex]

Step-by-step explanation:

Use the exponential growth formula

[tex]A = Pe ^ {rt}[/tex]

Where A is the final amount in the account, P is the initial amount, r is the growth rate and t is the time in years

In this problem

We know that

[tex]P=4,200\\\\r=\frac{3.5\%}{100\%}= 0.035\\\\ t=5\ years[/tex]

So

[tex]A = 4,200e^{0.035t}[/tex]

Finally after 5 years the balance of the account is:

[tex]A=\$5003.2[/tex]