Question

Use the equation A= Pe^rt to answer each question. Show all your work. Solve number one

Answer 1

Step-by-step explanation

In the question, we are given the following parameters.

`\begin{gathered} Principal=\text{ \$5000} \\ rate=6.1\text{\%} \\ time\text{ =6 years} \end{gathered}`

Since the principal is compounded continuously we will use the function below;

`A=Pe^(rt)`

Therefore;

`\begin{gathered} A=5000e^{(6.1)/(100)*6} \\ A=5000e^(0.366) \\ A=7209.7762 \end{gathered}`

Answer: $7209.7762