Answer:
$3,927.53
Step-by-step explanation:
You are going to want to use the continuous compound interest formula, which is shown below.
[tex]A = Pe^{rt}[/tex]
P = principal amount
r = interest rate (decimal)
t = time (years)
First change 8.25% to its decimal form:
8.25% -> [tex]\frac{8.25}{100}[/tex] -> 0.0825
Next, plug in the values into the equation:
[tex]A=2,600e^{0.0825(5)}[/tex]
[tex]A=3,927.53[/tex]
The balance of the account after 5 years will be $3,927.53
