Question

$5400 at 3.6% compounded continuously for 5 years.

Answer 1

A = $6,464.97

Explanation:

Given the principal amount of $5,400, and an interest rate of 3.6% compounded continuously for t = 5 years:

Substitute the given values into the Continuous Compounding Formula:

`A = Pe^(r*t)`

where:

P = principal = $5,400

e ≈ 2.7183 (irrational number)

r = interest rate = 3.6% or 0.036

t = time in years = 5

`A = Pe^(r*t)`

`A = 5400e^((0.036*5))`

`A = 5400e^(0.18)`

A = $6,464.97

Therefore, the amount after compounding continuously for 5 years is $6,464.97.