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35 votes
35 votes
Nathaniel invested $2,900 in an account paying an interest rate of 5.4% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 11 years?​

User Bergey
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2 Answers

10 votes
10 votes

Final answer:

To determine the amount in an account after 11 years with an investment of $2,900 at a 5.4% interest rate compounded continuously, use the formula A = Pert. Plug in the given numbers and calculate the value, rounding to the nearest cent.

Step-by-step explanation:

The student has asked how much money would be in an account after 11 years if $2,900 is invested at a 5.4% interest rate compounded continuously. To find the total amount in the account, we use the formula for continuous compounding, A = Pert, where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (in decimal), and t is the time in years. In this case, P = $2,900, r = 0.054 (5.4% as a decimal), and t = 11 years.

So, A = $2,900e(0.054×11).

After calculating this using a calculator, we'll round the answer to the nearest cent to find the final amount.

User Konrados
by
3.0k points
15 votes
15 votes

Answer:

5252.53

Step-by-step explanation:

User Iobender
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2.6k points