Question 603452: You deposit 500 in an account that pays 5% annual interest compounded continuously. What is the balance after 3 years?
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! You deposit 500 in an account that pays 5% annual interest compounded continuously. What is the balance after 3 years?
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Formula for continuous compounding: A=Pe^rt, P=initial investment, r=annual interest rate, A=amount after t years.
For given problem:
A=500e^.05*3
A=500e^.15
A=580.92
ans:
balance after 3 years=580.92
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