SOLUTION: If $5,000 is invested at 4% annual interest, compounded continuously, the value of the investment after t Years is V(t)=5000e^0.4t. What is the value after t=15 years?
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Question 1093371: If $5,000 is invested at 4% annual interest, compounded continuously, the value of the investment after t Years is V(t)=5000e^0.4t. What is the value after t=15 years? Answer by greenestamps(13203) (Show Source):
You can put this solution on YOUR website! You will need a scientific calculator or some similar tool to do the calculation. Just plug the given value of t in the expression and evaluate.
And, by the way, you haven't shown the formula correctly. The exponent should be 0.04t, not 0.4t. The 0.4t exponentn(corresponding to an interest rate of 40%) gives an unreasonable answer of over $2 million. The correct 0.04t exponent gives a reasonable answer of a little over $9000.
