A person places $5540 in an investment account earning an annual rate of 2.5%, compounded continuously. Using the formula V = Pe^{rt}V=Pe rt , 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 r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 20 years.

Answers

Answer 1

Answer:

$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

approximately $9,133.92


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