SOLUTION: The amount A in account after t years of an initial principle P invested at an annual rate r compounded continuiusly is given by A = Pe^rt where r is expressed as a decimal. What

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: The amount A in account after t years of an initial principle P invested at an annual rate r compounded continuiusly is given by A = Pe^rt where r is expressed as a decimal. What       Log On


   

Question 44930This question is from textbook Algebra and Trigonometry with Analytic geometry
: The amount A in account after t years of an initial principle P invested at an annual rate r compounded continuiusly 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 rate of 5% compounded continuously? My answer is $750.00, thanks for checking my answer. This question is from textbook Algebra and Trigonometry with Analytic geometry

Found 2 solutions by venugopalramana, Nate:
Answer by venugopalramana(3286) About Me  (Show Source):
You can put this solution on YOUR website!
The amount A in account after t years of an initial principle P invested at an annual rate r compounded continuiusly 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 rate of 5% compounded continuously? My answer is $750.00, thanks for checking my answer.
P=500 $
R=5%=5/100=0.05
T=10 YRS.
A=500*E^10*0.05=500*E^0.5=824.36

Answer by Nate(3500) About Me  (Show Source):
You can put this solution on YOUR website!
A = Pe^(rt)
A = 500e^(0.05*10)
A = 500e^(0.5)
I do not have a calculator on me with (e), but it looks correct.