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A person places $7420 in an investment account earning an annual rate of 5.9%, compounded continuously. Using the formula V = Pe^{rt}V=Pe rt , where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural logarithm, and r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 20 years.

Respuesta :

samuelonum1

Answer:

$24147.50

Step-by-step explanation:

Step one:

given

principal=$7420

rate = 5.9%= 0.059

time = 20years

Step two:

Required

Final amount V

using the relation

[tex]V = Pe^{rt}[/tex]

Substituting we have

[tex]V = 7420e^{0.059*20}\\\\V=7420e^{1.18}\\\\V=7420*3.2543\\\\V=24147.456[/tex]

To the nearest cent

= $24147.50

The amount of money in the account after 20 years is $24147.50

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