SOLUTION: THE AMOUNT A IN AN ACCOUNT AFTER t YEARS OF AN INITIAL PRINCIPLE P INVESTED AT AN ANNUAL RATE r COMPOUNDED CONTINUOUSLY IS GIVEN BY A=Pe^rt WHERE r IS EXPRESSED AS A DECIMAL. WHAT

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Question 64137: THE AMOUNT A IN AN ACCOUNT AFTER t YEARS OF AN INITIAL PRINCIPLE P INVESTED AT AN ANNUAL RATE r COMPOUNDED CONTINUOUSLY IS GIVEN BY A=Pe^rt WHERE r IS EXPRESSED AS A DECIMAL. WHAT IS THE AMOUNT IN THE ACCOUNT IF $500 IS INVESTED FOR 10 YEARS AT THE ANNUAL RATE OF 5% COMPOUNDED CONTINUOUSLY?
Answer by stanbon(48568) (Show Source):
You can put this solution on YOUR website!
THE AMOUNT A IN AN ACCOUNT AFTER t YEARS OF AN INITIAL PRINCIPLE P INVESTED AT AN ANNUAL RATE r COMPOUNDED CONTINUOUSLY IS GIVEN BY A=Pe^rt WHERE r IS EXPRESSED AS A DECIMAL. WHAT IS THE AMOUNT IN THE ACCOUNT IF $500 IS INVESTED FOR 10 YEARS AT THE ANNUAL RATE OF 5% COMPOUNDED CONTINUOUSLY?
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A=Pe^rt
A=500e^(0.05*10)
A=500e^0.5
A=$824.36
Cheers,
Stan H.