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Kristen invest $5428 in a retirement account with a fixed annual interest rate of 5% compounded continuously. What will the balance be after 16 years?

Respuesta :

Answer:$11848.64

Step-by-step explanation:

Let [tex]P[/tex] be the principal.

Let [tex]A[/tex] be the amount after [tex]t[/tex] years.

Let [tex]t[/tex] be the time period.

Let [tex]i[/tex] be interest rate.

Given,

[tex]P=5428\\i=5\%\\t=16[/tex]

[tex]A=P(1+\dfrac{i}{100})^{t}[/tex]

[tex]A=5428\times (1+\frac{5}{100})^{16}=5428\times (1.05)^{16}=5428\times 2.182=11848.64[/tex]