If Hannah places $ 3500 into an account earning 5% interest compounded continuously, how much will she have after 16 years?

Question

may i have the answer to this please with the work

Answer 1

For continuous interest the formula is

A = Pe^rt

 

A is final amount

P = principal investment = 3500

e = euler's number (on your

      scientific calculator)

r = interest rate = 5% = .05

t = time in years = 16

 

A = 3500e^(.05)(16) = 3500e⁸

 

A = $10,433,352.95