An initial investment of 5000 is appreciated for 7 years in

An initial investment of $5,000 is appreciated for 7 years in an account that earns 10% interest, compounded continuously. Find the amount of money in the account at the end of the period. Round your answer to the nearest cent.

Solution

Since, compounding is done continuously

F = Pe^rt

= (5000)e^(0.1*7)

=5000e^0.7

= 5000(2.013) = $10068.76 =