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

What is the balance after 1 year? 5 years? 10 years? 25 years?

User Bret Deasy
by
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2 Answers

3 votes

Answer: After 1 year = $15085.85168

After 5 years = $20339.34789

After 10 years = $29549.21947

After 25 years = $90609.34284

Explanation:

14000e^.0747 (however many years)

User Rainbowgoblin
by
8.2k points
5 votes

Answer:

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

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.

User Jongwoo
by
8.3k points
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