Question

If $8259 principal is invested in a savings account that pays 5.25% interest compounded continuously how much money will be in the account after 10 years?

A(10) = $

Answer 1

A(10) = $13,961.50

Explanation:

First, convert R as a percent to r as a decimal

r = R/100

r = 5.25/100

r = 0.0525 rate per year,

Then solve the equation for A

The formula is given as:

A = Pe^rt

P = 8259

r = 0.0525

t = 10 years.

Hence,

A = 8,259.00 × e^(0.0525×10)

A = $13,961.50

Therefore, the money that will be in the account after 10 years is $13,961.50