Money Growth: If you invest $5,250 in an account paying 6.38% compound continuously, how much money will be in the account at the end of:

(a) 6.25 years

(b) 17 years

Solution:

(a)

A = 5250*e^(0.0638*6.25) = 7822.30

So the account will be $7822.30 at the end of 6.25 yrs

(b)

A = 5250*e^(0.0638*17) = 15530.85

So the account will be $15530.85 at the end of 17 yrs