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Finance

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YOU DEPOSIT $5,000 INTO THE FIRST NATIONAL BANK OF FIN 301 AND EARN 2.5% COMPOUNDED CONTINUOUSLY. HOW MUCH WILL YOU HAVE IN 5 YEARS?

  • Finance -

    P = Po*e^rt.

    Po = $5,000.
    rt = (2.5%/yr * 5yrs.) / 100% = 0.125 = 5-yr % rate expressed as a decimal

    Plug the above values into the given Eq.
    Answer: $5665.74.

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