$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

$0.085\times5 = 0.425$

Step4: Calculate $e^{0.425}$

Using a calculator, $e^{0.425}\approx1.529277$

Step5: Calculate the final amount

$F = 1000\times1.529277=1529.277$ Rounding to the nearest cent, $F\approx 1529.28$

Answer:

$1529.28$