MATH SOLVE

4 months ago

Q:
# What is the interest earned on $20,000 for five years, at an interest rate of 3 3/5 % compounded continuously?

Accepted Solution

A:

[tex]\bf ~~~~~~ \textit{Continuously Compounding Interest Earned Amount}\\\\
A=Pe^{rt}\qquad
\begin{cases}
A=\textit{accumulated amount}\\
P=\textit{original amount deposited}\to& \$20000\\
r=rate\to 3\frac{3}{5}\%\to \frac{3\frac{3}{5}}{100}\to \frac{18}{500}\to &0.036 \\
t=years\to &5
\end{cases}
\\\\\\
A=20000e^{0.036\cdot 5}\implies A=20000e^{0.18}\implies A\approx 23944.3487262[/tex]