Solve the problem.
-If $7000 is invested at 8% compounded continuously, determine the balance in the account after 5 years.
A)$10,542.77
B)$9800.00
C)$10,285.30
D)$10,442.77

Question

Quizplus · Accepted Answer

The balance in the account after 5 years is $10,442.77. This is calculated using the formula A = Pe^(rt), where A is the balance in the account, P is the principal (initial investment), e is the base of the natural logarithm, r is the annual interest rate, and t is the time in years. In this case, P = $7000, r = 8%, and t = 5 years. Plugging these values into the formula, we get A = $7000e^(0.08*5) = $10,442.77.

Solve the Problem. -If $7000 Is Invested at 8% Compounded Continuously, Determine the Continuously