The amount in the account after four years is $3216.17.
Let's find the amount in the account after four years.
In initial amount of $2500 is invested in an account at an interest rate of 6.5% per year, compounded continuously.
Assuming that no withdrawals are made, the amount in the account after four years is $3216.17.
Steps to solve:
1. Formula:
A = P(1 + r/100)^n
where:
A is the final amount
P is the principal amount (initial investment)
r is the interest rate
n is the number of compounding periods
2. Plug in the values:
A = 2500(1 + 6.5/100)^4
3. Calculate:
A = 2500 * 1.286466350625
A = 3216.1658765625
4. Round to the nearest cent:
A ≈ $3216.17
Therefore , the amount in the account after four years is $3216.17.
Question
In initial amount of $2500 is invested in an account at an interest rate of 6.5% per year, compounded continuously. Assuming that no withdrawals are made, find the amount in the account after four years. Round your answer to the nearest cent.