1Suppose $24,000 is deposited into an account paying 7.25% interest, which is compounded continuously.How much money will be in the account after ten years if no withdrawals or additional deposits are made?You passed this Milestone19questions were answeredcorrectly.3questions were answeredincorrectly.$47,897.10$46,414.20$48,326.40UNIT 5 — MILESTONE 519/22
CONCEPTContinuously Compounding InterestRATIONALEThis is the general equation for compounding interest.is the principal (orbeginning) balance,is the annual interest rate, andis time (in years). Thenumberis approximately. Using the information provided, plug in theappropriate values into the formula.The account starts with, which gives us the value for. The account earnsinterest at a rate oforas a decimal. This gives us the value for. Wewant to know the value of the account after ten years, sois. To evaluate, firstsimplify the exponent.timesequals. Next, either use thebutton on your calculator orthe approximation ofand raise this value to thepower.to the power ofis equivalent to. Finally, multiply by.The account has a balance of $49,553.54 after 10 years.PrtePrte2.718281e$49,553.54
