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If you were to place $5,000 in a savings account that pays 6% interest compounded continuously, how much money will you have after 4 years? Assume you make no other deposits or withdrawals.

A$6,356.25
B$11,821.07
C$5,024
D$6,312.38

...?

Verified Answer :

Answer:

Option D - $6312.38

Step-by-step explanation:

Given : If you were to place $5,000 in a savings account that pays 6% interest compounded continuously.

To find : How much money will you have after 4 years?

Solution :

Using compound interest formula,

\(A=P(1+r)^t\)

Where A is the amount,

P is the principle P=$5000  

r is the rate r=6%=0.06

t is the time t= 4 years

Substitute the value,

\(A=P(1+r)^t\)

\(A=(5000)(1+0.06)^4\)

\(A=(5000)(1.06)^4\)

\(A=5000\times 1.262\)

\(A=6312.38\)

The money he have after 4 years is $6312.38

Therefore, Option D is correct.

Kati19

Answer:

A 6,356.25

Step-by-step explanation:

A

P

E

X

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