Jennifer invested $2,500 in an account earning 3.5% interest compounded continuosly. How much money will she have in the account after 15 years?
Pt = Po*e^rt.
rt = (3.5%/100%) * 15 = 0.525,
Pt = $2500*e^0.525 = $4226.15.
To calculate the amount of money Jennifer will have in the account after 15 years with continuous compounding interest, we can use the formula for continuous compound interest:
A = P * e^(rt)
Where:
A = the total amount after time t
P = the principal amount (initial investment)
e = Euler's number (approximately 2.71828)
r = interest rate (in decimal form)
t = time (in years)
In this case, Jennifer invested $2,500, the interest rate is 3.5% (or 0.035 in decimal form), and the time is 15 years. Let's plug the values into the formula:
A = 2500 * e^(0.035 * 15)
To calculate this, we need a scientific calculator or an online calculator that can handle exponential functions.
Using a calculator, the result is approximately $4,476.47.
Therefore, after 15 years, Jennifer will have approximately $4,476.47 in her account.