Solve the problem.
-If $5000 is invested at 5.25% compounded continuously,what is the amount in the account after 10 years?
A)$7420.65
B)$7625.00
C)$8452.29
D)$8442.52

Question

Quizplus · Accepted Answer

The formula for continuous compounding is $A=Pe^{rt}$, where $A$ is the ending amount, $P$ is the principal, $r$ is the annual interest rate (as a decimal), and $t$ is the time in years. Plugging in the given values, we get $A=5000e^{0.0525\cdot10}=8452.29$ (rounded to two decimal places). Therefore, the best choice is C.

Solve the Problem. -If $5000 Is Invested at 5.25% Compounded Continuously,what Is the Continuously,what