To use the continuous growth function \( A(t) = Pe^{rt} \), where:
- \( P \) is the principal amount (initial investment),
- \( r \) is the annual interest rate (as a decimal),
- \( t \) is the time in years,
- \( e \) is the base of the natural logarithm (approximately equal to 2.71828).
Given:
- \( P = 2500 \)
- \( r = 0.05 \) (5% expressed as a decimal)
- \( t = 6 \)
Now, plug these values into the formula:
\[ A(6) = 2500 \cdot e^{0.05 \cdot 6} \]
Calculating \( 0.05 \cdot 6 = 0.30 \):
So, we need to find \( e^{0.30} \):
Using a calculator (or an approximation),
\[ e^{0.30} \approx 1.34986 \]
Now plug this back into the formula:
\[ A(6) = 2500 \cdot 1.34986 \approx 3374.65 \]
Thus, the investment amount after 6 years will be approximately $3,374.65.
The answer is $3,374.65.