Apply the formula A = Pert
. 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?(1 point)
Responses
$6420
$6420
$3,600,245
$3,600,245
$10.660
$10.660
$60,913
To find the amount, A, that Dora's investment will be worth after 10 years, we can use the formula A = Pert.
Given:
P = $5,000 (initial investment)
r = 2.5% = 0.025 (annual interest rate)
t = 10 years
Substituting these values into the formula, we have:
A = 5,000e^(0.025 * 10)
Using a calculator, we can evaluate this expression:
A ≈ $6,420
Therefore, Dora's investment will be worth approximately $6,420 after 10 years.