A person places $51200 in an investment account earning an annual rate of 5.4%, compounded continuously. Using the formula V = Pert, where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural logarithm, and r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 6 years.​

Answer:

7,078,912 cents

Step-by-step explanation:

Given the formula for calculating the value of the account in t years as;

V = Pe^rt

P is the principal initially invested

e is the base of a natural logarithm,

r is the rate of interest

t is the time

Given

P = $51200

r = 5.4% = 0.054

t = 6years

Substitute

V = 51200e^(0.054)(6)

V = 51200e^(0.324)

V = 51200(1.3826)

V =  $70,789.12

V = 7,078,912 cents

hence the amount in the account after 6 years to the nearest cent is 7,078,912 cents

Answer:

Step-by-step explanation:

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