Eli received $10,000 in gift money when he graduated from high school. He deposits the money into an account with a 5 percent annual interest rate, compounded continuously. Use the formula P(t)=10,000e^0.05t to determine how much money will be in his account in four years. Include cents, if needed.(1 point)

Answer 1

To find out how much money will be in Eli's account in four years, we need to substitute the value of t = 4 into the formula P(t)=10,000e^(0.05t):

P(t) = 10,000e^(0.05*4)

P(t) = 10,000e^(0.2)

P(t) ≈ 10,000*1.221402758

P(t) ≈ $12,214.03

Therefore, there will be $12,214.03 in Eli's account in four years.