Apply the formula A=Pe^rt. Dora invests $5,000 is an account that is compounded continuously at an annual interest rate of 2.5%. In 10 years, how much will Dora's investment be worth to the nearest dollar?
Given: P = $5,000, r = 2.5% = 0.025, t = 10 years
To find the value of A, we can substitute the given values into the formula A = Pe^rt:
A = 5000 * e^(0.025 * 10)
Using a calculator, we find that e^(0.025 * 10) is approximately 1.281452.
A = 5000 * 1.281452
A = $6,407.26
Therefore, Dora's investment will be worth $6,407.26 to the nearest dollar.