14.2k views
2 votes
A person places $5540 in an investment account earning an annual rate of 2.5%, compounded continuously. Using the formula V = Pe^{rt}V=Pe rt , where V is 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 20 years.

User Jyemin
by
5.1k points

1 Answer

0 votes

Answer:

$9,133.92

Step-by-step explanation:

V = P*e^(rt)

V = 5540 * e ^ (0.025*20)

V = 5540 * e^(0.5)

V = 5540 * 1.648721

V = 9,133.9158

approximately $9,133.92

User Varo
by
5.5k points