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A person places $4760 in an investment account earning an annual rate of 1.6%, compounded continuously. Using the formula V=PertV = Pe^{rt}V=Pert, where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural logarithm, and r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 7 years.

Respuesta :

samuelonum1

Answer:

$5324.12

Step-by-step explanation:

Given that the principal p= $4760

rate r= 1.6%  1.6/100 =0.016  

time t= 7years

by applying the expression

[tex]V = Pe^{rt}[/tex]

We have

[tex]V = 4760e^{0.016*7}\\\\ V=4760e^{0.112}\\\\ V=4760*1.11851286065\\\\ V=$5324.12[/tex]

Hence after 7 years the money in the account will be $5324.12

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