Question

PLZ PLZ HELP
Mark is investing $47,000 in an account paying 5.26% interest compounded continuously.
What will Mark's account balance be in 17 years?
O $114,932.80
$114,925.39
$114,921.47
$114.925.46

Answer 1

Answer: Choice A) 114,932.80

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Work Shown:

A = P*e^(r*t)

A = 47000*e^(0.0526*17)

A = 114,932.799077198

A = 114,932.80

Notes:

• P = 47,000 is the principal or amount deposited
• r = 0.0526 is the decimal form of 5.26%
• The "e" refers to the special constant e = 2.718... which is similar to pi = 3.14... I would let your calculator handle this constant. There should be a button labeled "e".

Answer 2

Mark's account balance after 17 years would be $114,932.8

What is the formula for the continuous compounding?

$A=Pe^{rt}$

where,

A = Accrued amount

P = Principal amount

r = interest rate as a decimal

R = interest rate as a percent

r = R/100

t = time in years

For given question,

P = $47000, t = 17 years

R = 5.26%

$\Rightarrow r =\frac{5.26}{100}\\\\\Rightarrow r = 0.0526$

Using the Continuous Compounding Formula,

$\Rightarrow A=Pe^{rt}\\\\\Rightarrow A=47000\times e^{0.0526\times 17}\\\\\Rightarrow A=114932.8$

Therefore, Mark's account balance after 17 years would be $114,932.8

Learn more about the Continuous Compounding here:

https://brainly.com/question/24246899

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