Question

Suppose an investment account is opened with an initial deposit of $13,500 earning 4.75% interest, compounded continuously. How much will the account be worth after 25 years? (Round your answer to two decimal places.)

Answer 1

Gicen:

Suppose an investment account is opened with an initial deposit of $13,500 earning 4.75% interest, compounded continuously. How much will the account be worth after 25 years? (Round your answer to two decimal places.)

Using the formula:

`\begin{gathered} A=Pe^(rt) \\ A=? \\ P=\text{ \$13500} \\ r=(4.75)/(100)=0.0475\text{ \%} \\ t=25years \end{gathered}`
`\begin{gathered} A=13500e^(25(0.0475)) \\ A=44264.80 \end{gathered}`

Final answer:

44264.80