Answer:





Explanation:
P=$2500
r = 5%
t = 40 years
A= ? for n= 1, 2, 4, 12, 365
Continuous compounding is given by


For n=1

For n=2

For n=4

For n=12

For n=365

As the value of n keeps on increasing the value of A is coming to a steady value thus we approximate this by using exponential function


As you can see it is almost equal to our answer calculated earlier for n=365