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Question
When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, d S / d t=r S, where r is the annual rate of interest.
Find the amount of money accrued at the end of 5 years when $5000 is deposited in a savings account drawing$5 %$ annual interest compounded continuously.
Solution
VerifiedAnswered 7 months ago
Answered 7 months ago
Step 1
1 of 4We have the amount of money as and this amount of money increases at time at a rate is proportional to as
where is the annual rate of interest, with the condition
with an annual interest as , and we have to obtain the amount of accrued money after .
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