question 19 of 20\nif you were to place $2,500 in a savings account that pays 3% interest compounded…

Explanation:

Step1: Identify the 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 deposit), $r$ is the annual interest rate (in decimal form), and $t$ is the number of years.

Step2: Convert the interest rate to decimal

The annual interest rate $r = 3%=0.03$, the principal amount $P=$2500$, and the number of years $t = 5$.

Step3: Substitute the values into the formula

$A=2500\times e^{0.03\times5}=2500\times e^{0.15}$.

Step4: Calculate the value of $e^{0.15}$

Using a calculator, $e^{0.15}\approx1.161834$.

Step5: Calculate the final amount

$A = 2500\times1.161834=$2904.59$.

Answer:

B. $$2,904.59$