Final answer:
To find the interest earned on $50,000 deposited for 6 years at 1 1/2% interest, compounded continuously, we can use the formula for continuous compound interest. Therefore, the correct answer is $4,532.87 (b).
Step-by-step explanation:
To find the interest earned on $50,000 deposited for 6 years at 1 1/2% interest, compounded continuously, we can use the formula for continuous compound interest:
A = P*e^(rt), where A is the future value, P is the principal, r is the interest rate, and t is the time in years.
In this case, P = $50,000, r = 1.5% or 0.015, and t = 6 years.
Plugging in these values, we have A = $50,000 * e^(0.015 * 6).
Using a calculator, we find that A ≈ $54,532.87, so the interest earned is approximately $54,532.87 - $50,000 = $4,532.87 (rounded to the nearest cent). Therefore, the correct answer is $4,532.87 (b).