Question
Asked Dec 22, 2019
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Find the amount that results from the given investment.
$30 invested at 5% compounded continuously after a period of 2 years
After 2 years, the investment results in $
(Round to the nearest cent as needed.)
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Find the amount that results from the given investment. $30 invested at 5% compounded continuously after a period of 2 years After 2 years, the investment results in $ (Round to the nearest cent as needed.)

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Expert Answer

Step 1

From the given information it is required to calculate the amount that results from the given investment:

Principal (P) = $30

Rate (r) = 5% = 5/100 = 0.05

Time (t) = 2 years

The formula to calculate the amount that is compounded continuously is:

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amount( A) = Pe"

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Step 2

Now, put in the values to c...

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A = 30e0.05(2) = 30e01 = 30(1.10517) = 33.155127

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Algebra

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