Suppose an investment of $5000 is compounded continuously at an annual interestrate of 4%.At the end of seven years, how much will the investment be worth? Please roundyour answer to the nearest cent and write your answer without a dollar sign.

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Answered: Suppose an investment of $5000 is…

Calculus: Early Transcendentals

8th Edition

ISBN:9781285741550

Author:James Stewart

Publisher:James Stewart

Chapter1: Functions And Models

Section: Chapter Questions

Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...

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Question

Suppose an investment of $5000 is compounded continuously at an annual interest
rate of 4%.
At the end of seven years, how much will the investment be worth? Please round
your answer to the nearest cent and write your answer without a dollar sign.

Expert Solution

Step 1: concept

$F o r m u l a bold italic A bold equals bold italic P bold left parenthesis bold 1 bold plus bold r over bold n bold right parenthesis to the power of bold n bold t end exponent bold space A equals f i n a l space a m o u n t P equals i n i t i a l space p r i n c i p a l space b a l a n c e r equals i n t e r e s t space r a t e n equals n u m b e r space o f space t i m e s space i n t e r e s t space a p p l i e d space p e r space t i m e space p e r i o d t equals n u m b e r space o f space t i m e space p e r i o d s space e l a p s e d$