Problema Solution
Suppose you invest $8000 at an annual interest rate of 5% compounded continuously. How much money will you hhave in 6 years
Answer provided by our tutors
let
P = $8000 the money invested
r = 0.05 or 5%
t = 6 years
A = the future value
A = P*e^(r*t)
A = 8000*e^(0.05*6)
e = 2.7183
A = $10,798.89
In 6 years there will be $10,798.89 in the account.