Question

Suppose you deposit $7000 at 5% interest compounded continously. Find the average value of your account during the first 4 years.

Answer 1

3887.45

Step-by-step explanation:

When t=0

A = 7000e^(.05*0)

A= 7000

When t=4

A = 7000e^(.05*4)

A = 8549.82

To find the average, we add the values and divide by the number of years.

(7000 + 8549.82) / 4

3887.45