Question

If $25,000 is invested in a saving account at a rate of 7% compounded continuously, then the amount in the account after 5 years is approximately....

A ) 35,063.79

B ) 35,476.69

C ) 35,369.45

D ) 35,475.50

E ) None of the above

Answer 1

Answer: 35,476.69

Explanation:

the formula is

A=p×e^(rt)

A future value?

P present value 25000

R interest rate 0.07

T time 5years

A=25,000×e^(0.07×5)

A=35,476.69

Hope it helps!