Question

Neda made a one-time deposit of $47,500,00 into a savings account that pays 4%annual interest compounded continuously, How much vall the account be worth 6years from when Neda made the deposit?Use the equation A = Pet to answer the question, Assume no additional deposts orwithdrawals have occurred. Also assume the interest rate does not change while theaccount is open, Round your answer to the nearest cent,

Answer 1

$60,384.33

1) Let's gather the data:

`\begin{gathered} A=Pe^(rt) \\ \end{gathered}`

Initial and unique deposit: $47,500.00

Rate of Annual Interest: 0.04 (4%) per year

Time: 6 years

2) So let's plug those data into the formula:

`\begin{gathered} A=47,500e^(0.04\cdot6) \\ A\approx60,384.33 \end{gathered}`

3) Hence, the account of Neda will be worth $60,384.33