SOLUTION: Mrs. Brown put $10,000 into a savings account that pays 5% interest, compounded continuously. How much will Mrs. Brown have in the account after 6 years

Question 1159027: Mrs. Brown put $10,000 into a savings account that pays 5% interest, compounded continuously. How much will Mrs. Brown have in the account after 6 years
Answer by ikleyn(52794) (Show Source): You can put this solution on YOUR website!
.


For continuously compounded account, the Future Value


    FV = ,


where A is initial deposit, k is the interest, expressed as decimal, and t is the time in years.


In your case


    FV =  =  = 13498.59 dollars.       ANSWER

Solved.

--------------------

For continuously compounded accounts, see the lesson
- Compound interest percentage problems
in this site.

RELATED QUESTIONS
If you put $1,500 in a savings account that pays 4% interest compounded continuously, how (answered by jim_thompson5910)

A man makes a deposit of $50,000 into an account that pays an annual interest of 5%. How... (answered by math_tutor2020)

If you put $4,000 in a savings account that pays interest at the rate of 4%, compounded... (answered by rfer)

Sarah deposited $500.00 into a savings account that pays 5% annual interest that is... (answered by solver91311)

Karen is going to deposits $5000 into an account that pays 6% interest compounded... (answered by rfer)

If $5000 is invested in a savings account that pays 7.85% interest compounded... (answered by Paul)

If $5000 is invested in a savings account that pays 7.85% interest compounded... (answered by Mathtut)

If you put $4,000 in a savings account that pays interest at the rate of 6 percent,... (answered by ikleyn)

If you put $ 6,000 in a savings account that pays interest at the rate of 4 percent,... (answered by stanbon)