Use the formulas $A = p \left( 1 + \frac { r } { n } \right) ^ { n t }$ or $A = p \mathrm { e } ^ { r t }$ to find the amount for the investment. $10,800 for 5 years at 5% compounded continuously.
A) $13,867.40
B) $13,867.47
C) $13,867.54
D) $13,867.26
E) $13,867.33

Question

Quizplus · Accepted Answer

To find the amount for an investment of $10,800 for 5 years at 5% compounded continuously, use the formula $A = p \mathrm { e } ^ { r t }$. Here, $p = 10800$, $r = 0.05$, and $t = 5$. Plugging these values into the formula gives $A = 10800 \cdot \mathrm { e } ^ { 0.05 \cdot 5 }$, which calculates to approximately $13,867.47.

Use the Formulas A=p(1+rn)ntA = p \left( 1 + \frac { r } { n } \right) ^ { n t }A=p(1+nr​)nt

Use the Formulas $A = p \left( 1 + \frac { r } { n } \right) ^ { n t }$