Answer:
$5,857.97
Step-by-step explanation:
You are going to want to use the continuous compound interest formula, which is shown below.
[tex]A = Pe^{rt}[/tex]
A = total
P = principal amount
r = interest rate (decimal)
t = time (years)
First change 3% into the decimal form:
3% -> [tex]\frac{3}{100}[/tex] -> 0.03
Now lets plug in the values into the equation:
[tex]A=5,042e^{0.03(5)}[/tex]
[tex]A=5,857.97[/tex]
Ted's account balance after 5 years will be $5,857.97
