Q:

What is the interest earned on $20,000 for five years, at an interest rate of 3 3/5 % compounded continuously?

Accepted Solution

A:
[tex]\bf ~~~~~~ \textit{Continuously Compounding Interest Earned Amount}\\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \$20000\\ r=rate\to 3\frac{3}{5}\%\to \frac{3\frac{3}{5}}{100}\to \frac{18}{500}\to &0.036 \\ t=years\to &5 \end{cases} \\\\\\ A=20000e^{0.036\cdot 5}\implies A=20000e^{0.18}\implies A\approx 23944.3487262[/tex]