Answer:
Option D - $6312.38
Step-by-step explanation:
Given : If you were to place $5,000 in a savings account that pays 6% interest compounded continuously.
To find : How much money will you have after 4 years?
Solution :
Using compound interest formula,
[tex]A=P(1+r)^t[/tex]
Where A is the amount,
P is the principle P=$5000
r is the rate r=6%=0.06
t is the time t= 4 years
Substitute the value,
[tex]A=P(1+r)^t[/tex]
[tex]A=(5000)(1+0.06)^4[/tex]
[tex]A=(5000)(1.06)^4[/tex]
[tex]A=5000\times 1.262[/tex]
[tex]A=6312.38[/tex]
The money he have after 4 years is $6312.38
Therefore, Option D is correct.
