Answer:
$45950.57
Step-by-step explanation:
We have been given that the Laffite family deposits $8500 in a savings account at 6.75% interest, compounded continuously.
To find the amount in the account after 25 years we will use continuous compounded interest formula.
[tex]A=P*e^{rt}[/tex],where,
A = Final amount after t years,
P = Principal amount,
e = Mathematical constant,
r = Interest rate in decimal form,
t = Time.
Let us convert our given rate in decimal form.
[tex]6.75\%=\frac{6.75}{100}=0.0675[/tex]
Upon substituting our given values in above formula we will get,
[tex]A=\$8500*e^{0.0675*25}[/tex]
[tex]A=\$8500*e^{1.6875}[/tex]
[tex]A=\$8500*5.405948925141167[/tex]
[tex]A=\$45950.5658636999195\approx\$45950.57[/tex]
Therefore, there will be $45950.57 in the account after 25 years.
