Answer:
$6,377.42
Step-by-step explanation:
Continuous Compounding Formula
[tex]\fbox{$A = Pe^{rt}$}[/tex]
where
- P = principal (initial amount deposited)
- A = accrued(final) amount
- r = rate of interest as a decimal
- t = time in number of years
- e is the mathematical constant ≈ 2.71828
Using the above formula and plugging in values:
- P = 3500
- r = 12/100 = 0.12
- t = 5
we get
[tex]A = 3500 e^{(0.12 * 5)}\\\\A = 3500 * e^{0.6}[/tex]
Using a calculator this works out to
A = $6,377.42
