Answer:
$4,555
Step-by-step explanation:
According to the scenario, calculation of the given data are as follows,
Total deposit (P) = $2,500
Annual interest (r) = 12%
Time period (t) = 5 years
We can calculate the balance after 5 years if compounded continuously by using following formula,
FV = P[tex]e^{rt}[/tex]
By putting the value, we get
FV = $2,500 × [tex]e^{(0.12 * 5)}[/tex]
= $2,500 ×[tex]e^{.60}[/tex]
= $2,500 × 1.822
= $4,555