Question

Kristen invest $5428 in a retirement account with a fixed annual interest rate of 5% compounded continuously. What will the balance be after 16 years?

Answer 1

Answer:$11848.64

Explanation:

Let
`P` be the principal.

Let
`A` be the amount after
`t` years.

Let
`t` be the time period.

Let
`i` be interest rate.

Given,

`P=5428\\i=5\%\\t=16`

`A=P(1+(i)/(100))^(t)`

`A=5428* (1+(5)/(100))^(16)=5428* (1.05)^(16)=5428* 2.182=11848.64`