Question

$1000 are deposited in an account with a 8.5% interest rate, compounded continuously. what is the balance after 5 years? p = $1000 r = 0.085 t = 5 f = pe^{rt} f = $?

Explanation:

Step1: Substitute values into formula

$$F = 1000\times e^{0.085\times5}$$

Step2: Calculate exponent

$$0.085\times5 = 0.425$$

Step3: Calculate exponential part

$$e^{0.425}\approx1.52994$$

Step4: Calculate final amount

$$F = 1000\times1.52994 = 1529.94$$

Answer:

$1529.94$