what is the amount of money in the account after 15 years

Question

$4200 is invested in a long term trust fund with an interest rate of 5% compounded continuously, what is the amount of money in the account after 15 years

Answer 1

Hi.

I would use the formula A=Pe^rt

A= Amount in account after compounded continuously

P= Principal - initial amount of investment

r= rate - the percentage as a decimal

t=. time - years it is compounded continuously

A= what you need to find

P = 4200

r = 5% = .05

t=15

Plug in P, r and t into the above equation and you should have the answer. Btw, e is a number it’s approx 2.72 ish.

I hope this helps. Have a great day!

Mrs. S