Answer:
[tex]\$10272.17[/tex]
Step-by-step explanation:
Since it is compounded continuously, we will use:
[tex]A=A_0 \cdot e^{k t}[/tex]
[tex]A_0[/tex] is the amount invested.
[tex]k[/tex] is the rate.
[tex]t[/tex] is the number of years you let the money sit.
[tex]A[/tex] is the future amount after the [tex]t[/tex] years that has been accumulated.
(Note:
I'm going to write [tex]r=4%[/tex] as a decimal. [tex]r=\frac{4}{100}=0.04[/tex].)
[tex]A=5000 \cdot e^{0.04 \cdot 18}[/tex]
[tex]A=5000 \cdot e^{0.72}[/tex]
[tex]A=5000 \cdot 2.0544332[/tex] (approximated)
[tex]A=10272.16605[/tex] (approximated)
To the nearest cent this is [tex]\$10272.17[/tex].
