chase puts $1,000.00 into an account to use for school expenses. the account earns 6% interest, compounded…

Explanation:

Step1: Identify the continuous - compounding formula

The formula for continuous - compounding is $A = Pe^{rt}$, where $A$ is the amount of money in the account after $t$ years, $P$ is the principal amount (initial investment), $r$ is the annual interest rate (in decimal form), and $t$ is the number of years.

Step2: Convert the interest rate to decimal form

The annual interest rate $r = 6%=0.06$, the principal amount $P = 1000$, and the number of years $t = 5$.

Step3: Substitute the values into the formula

Substitute $P = 1000$, $r = 0.06$, and $t = 5$ into the formula $A = Pe^{rt}$. We get $A=1000\times e^{0.06\times5}$.

Step4: Calculate the exponent part

First, calculate $0.06\times5 = 0.3$. Then, find the value of $e^{0.3}$. Using a calculator, $e^{0.3}\approx1.3498588076$.

Step5: Calculate the final amount

Multiply 1000 by $e^{0.3}$: $A = 1000\times1.3498588076\approx1349.86$.

Answer:

$1349.86$