SOLUTION: If you deposit $1000 in an account that pays 6% annual interest commpounded continuously, what will the balance be after five years?

Question 669620: If you deposit $1000 in an account that pays 6% annual interest commpounded continuously, what will the balance be after five years?
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
Start with the continuous compounding formula.

Plug in , (the decimal equivalent of 6%), and .

Multiply and to get .

Raise 'e' (which is approximately 2.71828) to the power to get (this value is approximate).

Multiply and to get .

Round to the nearest hundredth (ie to the nearest penny).

The balance after five years is $1349.86
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