Answered

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If you invest $5,000 dollars in an account that will 6.5% compounded continuously , how much will it be worth after 8 years?

Sagot :

It is given that an amount of $5000 is componded continuously for 8 years at 6.5%.

So the amount is given by the formula:

[tex]A=P(1+\frac{r}{100k})^{kn}[/tex]

Where k is the number of compounding periods in a year, r is the annual rate of interest and n is the number of years.

Here:

[tex]r=6.5,k=365,n=8,P=5000[/tex]

Substitute the values to get:

[tex]A=5000(1+\frac{6.5}{100\times365})^{365\times8}=8409.7489[/tex]

Hence in 8 years the amount will be $8409.7489.

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