SOLUTION: Please help me with this problem: Richard invests $10,000.00 in a savings account which pays 8% compounded continuously. Consider the following formula. A = P(2.71)^r � t, where

Question 1042404: Please help me with this problem:
Richard invests $10,000.00 in a savings account which pays 8% compounded continuously. Consider the following formula.
A = P(2.71)^r � t, where
A is the ending account balance after t years
P is the initial amount of money invested
r is the interest rate, and
t is the time in years
How much money would he have in his savings account after 5 years?
A) $10,001.49
B) $12,830.46
C) $14,900.05
D) $1,583,011.24

Answer by robertb(5830) (Show Source): You can put this solution on YOUR website!
A more accurate formula would be , but since you approximated e with the value 2.71, the future value would be
,
and now you know the answer...
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