Question

A person places $5540 in an investment account earning an annual rate of 2.5%,

compounded continuously. Using the formula V = Pent, 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 ris the rate of interest, determine the amount of money, to the
nearest cent, in the account after 20 years.​

Answer 1

$9,133.92

Explanation:

V = P*e^(rt)

V = $5540 * e ^ (0.025*20)

V = 5540 * e^(0.5)

V = 5540 * 1.648721

V = $9,133.9158

about $9,133.92