If the Laffite family deposits $8500 in a savings account at 6.75% interest, compounded continuously, how much will be in the account after 25 years?

For continuous compounding, use A = Pe^(rt), where P = $8,500, r = 0.0675, and t = 25. The exponent is 0.0675 × 25 = 1.6875, so A = 8,500e^1.6875 ≈ $45,950.57. The account will contain about $45,950.57, choice B.

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