tructions: Use the information given to answer the ques
1) Mr. Kelly opens a bank account that pays interest compounded continuously when his son was born. He put
$5,000 in right away as well. He knows that he can calculate the value of the account by using the formula,
A(t) = Pert, where A(t) is the amount in the account after t years, and P is the initial amount invested and ris
the rate earned.
Mr. Kelly is hoping that by the time his son is 18 there will be $25,000 in the account. What rate would the
account need to be compounded at for that to happen?