Question

If $2,500 is invested with an interest rate of 10%, compounded continuously, determine the amount of money in the account after 5 years.

Answer 1

Let
\[f(t)=f _{0}*e ^{0.10t},f _{0}=f(0)=2500$ \]
be the function that determines the amount of money in t years
thus, with t=5 years
\[f(5)=2500*e ^{0.5}\approx 4121,80\]