Answer:
[tex][/tex] We can use the formula for continuous compound interest:
A = P × e^(rt)
Where:
A = the amount of money in the account after the specified time period
P = the principal amount (initial deposit) = $5000
r = the annual interest rate = 7% or 0.07
t = the number of years = 5
e = Euler's number, approximately equal to 2.71828
Plugging in these values:
A = $5000 × e^(0.07*5)
A = $5000 × e^0.35
A = $5000 × 1.419067
A = $7095.34
Therefore, after 5 years with continuous compounding interest at a rate of 7%, you will have approximately $7095.34 in the investment account.
