Question

A person places $262 in an investment account earning an annual rate of 3.7%,

compounded continuously. Using the formula V = Pert, where Vis the value of the

account in t years, P is the principal initially invested, e is the base of a natural

logarithm, and r is the rate of interest, determine the amount of money, to the

nearest cent, in the account after 5 years.

Answer 1

$315.24

Explanation:

Principal, P =$262

Rate, r= 3.7% =0.037

Time, t= 5 Years

The Value of the Investment which is compounded continuously is gotten using the formula:

`V=Pe^(rt)\\=262*e^(0,037*5)\\=\$315.24`

The value of the investment after 5 years is $315.24 to the nearest cent.