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Mathematics - Algebra - Continuous Compounding

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Money is transferred continuously into an account at the constant rate of $2,400 per year. The account earns interest at the annual rate of 6% compounded continuously. How much will be in the account at the end of 5 years?

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The expert examines continuous compounding at a constant rate. A complete, neat and step-by-step solution is provided.

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P = $2400, i = 6% = 0.06 every year but compounded continuously.

The term of saving = 5 years.

At the end of year1, the amount will be A1 = P.e^rt = 2400.e^(0.06) = ...

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