Answer:
A = $6,464.97
Step-by-step explanation:
Given the principal amount of $5,400, and an interest rate of 3.6% compounded continuously for t = 5 years:
Substitute the given values into the Continuous Compounding Formula:
[tex]A = Pe^{r*t}[/tex]
where:
P = principal = $5,400
e ≈ 2.7183 (irrational number)
r = interest rate = 3.6% or 0.036
t = time in years = 5
[tex]A = Pe^{r*t}[/tex]
[tex]A = 5400e^{(0.036*5)}[/tex]
[tex]A = 5400e^{0.18}[/tex]
A = $6,464.97
Therefore, the amount after compounding continuously for 5 years is $6,464.97.
