Question

Use the equation A= Pe^rt to answer each question. Show all your work. Solve number one

Answer 1

Explanation

In the question, we are given the following parameters.

$\begin{gathered} Principal=\text{ \ 5000} \\ rate=6.1\text{\%} \\ time\text{ =6 years} \end{gathered}$

Since the principal is compounded continuously we will use the function below;

$A=Pe^{rt}$

Therefore;

$\begin{gathered} A=5000e^{\frac{6.1}{100}\times6} \\ A=5000e^{0.366} \\ A=7209.7762 \end{gathered}$

Answer: $7209.7762