Question

suppose you invest 1050 at an annual interest rate of 5.5% compounded continuously. How much will you have in the account after 5 years? round the solution to the nearest dollar. HELP please

Answer 1

Answer: $1372

Explanation:

The formula to calculate the compound amount is given by :-

`A=P(1+r)^t`, where P is principal amount, r is rate of interest and t is time.

Given: P = $1050

r=5.5%=0.055

t= 5 years

Now, the compound amount after 5 years will be :_

`A=1050(1+0.055)^5\\\\\Rightarrow\ A=\$1372.30800673\approx\$1372`

You will have $1372 in the account after 5 years.

Answer 2

For an investment with an interest rate compounded continuously, the formula would be

F = Pe^(rn), where r is the annual interest rate and n is the number of years.
F = 1050e^(0.055*5)
F = $1382.36

I hope I was able to answer your question.