On the day of a childs birth a parent deposits 35000 in a tr

On the day of a child\'s birth, a parent deposits $35,000 in a trust fund that pays 5% interest, compounded continuously. Determine the balance in this account on the child\'s 25th birthday. (Round your answer to two decimal places.)

Solution

balance after t years A=Pe^rt

P=35000,r =5%=0.05,t =25

balance after 25 years A=35000e^0.05*25

balance after 25 years A=35000*3.49034

balance after 25 years A=122161.90$