Question

Use the continuous compound interest formula to find the indicated value

Answer 1

`\bf ~~~~~~ \textit{Continuously Compounding Interest Earned Amount}\\\\ A=Pe^(rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \$7000\\ r=rate\to 5.05\%\to (5.05)/(100)\to &0.0505\\ t=years\to &5 \end{cases} \\\\\\ A=7000e^(0.0505\cdot 5)\implies A=7000e^(0.2525)`