View an example | 1 part remaining x If $5000 is deposited in a savings account that earns interest at an annual rate of 5.5% interest compounded continuously, what is the value of the account at the end of six years? (3 s=Pert To find the amount of money in the account after 6 years, begin by identifying the values for P, r, and t. P = $5000, r = 0.055, t= 6 Now substitute the values from above into the formula. P e '1 5000 e (0-055X5) S 3 Now evaluate the exponential expression. 5000 6 (005505) 5000 e 0-33 Simplify the right side of the equation. 3 = 5000(20-33 s w 6954.84 View an example | All parts showing X Find the present value of $2000 payable at the end of 3 years, if money may be invested at 6% with interest compounded continuously. (E The present value P ofAfuture dollars to be received after t years, (assuming continuously compounded interest, r), is given by the following formula. P=Ae'\" To find the present value of $2000 future dollars, use the present value formula. For this investment plan, A = $2000, r = 0.06, and t= 3 years. Now substitute the given values into the formula. P Alert P = 2000c"0\"3) Simplify the right side of the equation. P = 2000a '0359' P 200060-18 P 16?054 Thus, the present value of $2000 is $1670.54. This means that if $1670.54 is invested now at an interest rate of 6%, compounded continuously, the future value in 3 years will be $2000