Answer:
$42,572 was in the account at the end of five years
Step-by-step explanation:
The amount of money, after t years, compounded continuously, is given by the following equation:
[tex]P(t) = P(0)e^{rt}[/tex]
In which P(0) is the initial investment and r is the interest rate, as a decimal.
A lottery winner invested $30,000 in an account earning 7% per year compounded continuously.
This means that [tex]P(0) = 30000, r = 0.07[/tex].
If no withdrawals are made, how much was in the account at the end of five years
This is P(5)
[tex]P(t) = P(0)e^{rt}[/tex]
[tex]P(5) = 30000e^{0.07*5}[/tex]
[tex]P(5) = 42572[/tex]
$42,572 was in the account at the end of five years
