$1000 are deposited in an account with a 8.5% interest rate, compounded continuously. what is the balance…

$1000 are deposited in an account with a 8.5% interest rate, compounded continuously. what is the balance after 5 years? p = $1000 r = 0.085 t = 5 f = pe^{rt} f = $? round to the nearest cent

$1000 are deposited in an account with a 8.5% interest rate, compounded continuously. what is the balance after 5 years? p = $1000 r = 0.085 t = 5 f = pe^{rt} f = $? round to the nearest cent

Answer

Explanation:

Step1: Identify the formula variables

$P = 1000$, $r=0.085$, $t = 5$

Step2: Substitute values into formula

$F=Pe^{rt}=1000\times e^{0.085\times5}$

Step3: Calculate the exponent value

$0.085\times5 = 0.425$

Step4: Calculate the exponential part

$e^{0.425}\approx1.52994$

Step5: Calculate the final amount

$F = 1000\times1.52994=1529.94$

Answer:

$1529.94$