Answer:
$11535.60
Step-by-step explanation:
We have been given that Jackson deposited $5000 at 3.8% interest compound continuously when he was 18 years old.
To find the amount that Jackson will earn when he is 40 years old, we will use compound interest formula.
[tex]A=P\cdot e^{rT}[/tex]
A= Amount after T years.
P= Principal amount.
e= Mathematical constant e.
r= Interest rate (in decimal form).
T= Time in years.
Let us convert our given interest rate into decimal form.
[tex]3.8\text{ percent}=\frac{3.8}{100}=0.038[/tex]
Upon substituting our given values in above formula we will get,
[tex]A=5000\cdot e^{(0.038\times (40-18))}[/tex]
[tex]A=5000\cdot e^{(0.038\times 22)}[/tex]
[tex]A=5000\cdot e^{0.836}[/tex]
[tex]A=5000\cdot 2.307120015126555[/tex]
[tex]A=11535.600075632775\approx 11535.60[/tex]
Therefore, Jackson will have $11535.60 in his account when he is 40 years old.
