Question

Celeste invest $5000 into an account that earns 10% interest compounded continuously. How much money will she have after 4 years?

Answer 1

Celeste will have approximately $7408.68 after 4 years of investing $5000 at an interest rate of 10% compounded continuously.

Step-by-step explanation:

To find out how much money Celeste will have after 4 years, we can use the formula for compound interest: A = P * e^(rt), where A is the final amount, P is the principal amount (initial investment), e is the mathematical constant approximately equal to 2.71828, r is the annual interest rate, and t is the number of years. In this case, Celeste invests $5000 at an interest rate of 10% compounded continuously for 4 years.

So, the formula becomes A = 5000 * e^(0.10 * 4).

Plugging in the values, we have A = 5000 * e^(0.40) ≈ $7408.68.