Answer:
$35,953 would be in the account after 5 years.
Step-by-step explanation:
The amount of money earned in interest which is compound continuosly after t years is given by the following equation:
[tex]A(t) = Pe^{rt}[/tex]
In which A(t) is the amount of money after t years, P is the principal(initial deposit) and r is the interest rate, as a decimal.
Samuel invested $28,000 in an account paying an interest rate of 5% compounded continuously.
This means that [tex]P = 28000, r = 0.05[/tex]
So
[tex]A(t) = Pe^{rt}[/tex]
[tex]A(t) = 28000e^{0.05t}[/tex]
How much money, to the nearest dollar, would be in the account after 5 years?
This is A(5)
[tex]A(t) = 28000e^{0.05t}[/tex]
[tex]A(5) = 28000e^{0.05*5} = 35952.7[/tex]
Rounding up to the nearest dollar
$35,953 would be in the account after 5 years.
