Suppose 40000 is deposited into an account paying 25 interes

Suppose $40,000 is deposited into an account paying 2.5% interest, compounded continuously. How much money is in the account after eight years if no withdrawals or additional deposits are made? A. $48,856.11 B. $48,486.34 C. $48,736.12 D. $49,123.52

please show work

Solution

Formula for compounded continuosly is

A = pe^rt

P= $40,000

r= o.o25

t= 8

A = 400008(e)^(0.025*8)

=> A = $48856.11

(A) is the correct option