An amount of 5000 is deposited in a bank paying an annual interest rate of 1.5%,compounded continuously. Find the balance of the account after 7 years.

Solution

An amount of 5000 is deposited in a bank paying an annual interest rate of 1.5%, compounded continuously. Find the balance of the account after 7 years.

Solution

Amount : 5553.55

Solution steps

Translate the problem into an equation:

A = 5000 e^{0.015 \cdot 7}

5000 e^{0.015 \cdot 7} = 5553.55305 \dots

Round to the nearest hundredth:

5553.55

Amount : 5553.55

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