Question

Joseph invested $16,000 in an account paying an interest rate of 5.7% compounded

continuously. Assuming no deposits or withdrawals are made, how much money, to
the nearest cent, wbuld be in the account after 14 years?

Answer 1

Answer: 34767.2

Explanation:

given p = $16,000, n = 14 years, y = 5.7%

amount in bank after 14 years = p ( 1 + </100)

= 16,000 (1 + 5.7/ 100) 14

= 34767.2

Answer 2

• $35537.51

Explanation:

Required formula:

• P(t) = P₀
  `e^(rt)`

Substitute values and solve:

• P(14) = 16000
  `e^(0.057*14)`
• P(14) = 35537.51