Answer:
[tex]\$36,945.28[/tex]
Step-by-step explanation:
we know that
The formula to calculate continuously compounded interest is equal to
[tex]A=P(e)^{rt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
e is the mathematical constant number
we have
[tex]t=25\ years\\ P=\$5,000\\ r=8\%=8/100=0.08[/tex]
substitute the values in the formula
[tex]A=5,000(e)^{0.08*25}[/tex]
[tex]A=5,000(e)^{2}[/tex]
[tex]A=\$36,945.28[/tex]
