SOLUTION: If $8000 is invested in an account that pays 4% interest compounded continuously, how much is in the account at the end of 10 years?

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Question 889496: If $8000 is invested in an account that pays 4% interest compounded continuously, how much is in the account at the end of 10 years?
Answer by Lapric(19) About Me  (Show Source):
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If $8000 is invested in an account that pays 4% interest compounded continuously, how much is in the account at the end of 10 years?

So for this we use the continuously compounded formula which is +A%28t%29=Pe%5E%28rt%29+
We have P= 8,000, r= 0.04, and t=10
So, A(10)= 8,000e^(0.04*10)
A(10)=8,000e^0.4
A(10)=11,934.60
After 10 years, there is 11,934.60 dollars in the account.