Answer:
The amount that results from investing $5000 at 3% compounded continuously for 5 years is $5800
Step-by-step explanation:
We are given:
Principal Amount (P) = $5000
Years (t) = 5
Rate (r) = 3% or 0.03
We need to find New Amount (A)
The formula used is: [tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Since amount is compounded continuously so n=1
Putting values and finding A
[tex]A=P(1+\frac{r}{n})^{nt}\\A=5000(1+\frac{0.03}{1})^{1*5}\\A=5000(1+0.03)^5\\A=5000(1.03)^5\\A=5000(1.16)\\A=5800[/tex]
So, New Amount (A) = $5800
The amount that results from investing $5000 at 3% compounded continuously for 5 years is $5800
