Ryan invested 5000 in an account that grows continuously at an annual rate of 2.5%. Write the function that represents the situation, where A is the value of Ryan's investment after t years.

Solution

Solution

Amount before addition : 4878.04878 \dots

Solution steps

Translate the problem into an equation:

5000 = x + 0.025 x

5000 = x + 0.025 x : x = \frac{200000}{41}

\frac{200000}{41} = 4878.04878 \dots

Amount before addition : 4878.04878 \dots

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