Use the continuous compound interest formula to find the indicated value. P=​$5,000​; r=3.22​%; t=6 ​years; A=​?

Question

Use the continuous compound interest formula to find the indicated value.

P=​$5,000​; r=3.22​%; t=6 ​years; A=​?

A=​$_______ ​(Round to two decimal places as​ needed.)

Answer 1

the underlying formula that you want to use here for compound interest is

A = Pe^(rt)

meaning that for this scenario you can take

A = 5000*e^(0.0322*6)

A = 6065.63

meaning that the final amount in the account here is $6,065.63

Answer 2

A = 5000e^(6)(0.0322)

A = 5000e^0.1932