Question 1007049: Mary has $3,500 in a savings account earning 4 1/2% annual interest that is compounded continuously. How much will be in the account at the end of 3 years?
Found 2 solutions by lwsshak3, ikleyn:
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! Mary has $3,500 in a savings account earning 4 1/2% annual interest that is compounded continuously. How much will be in the account at the end of 3 years?
Formula for continuous compounding: A=Pe^rt, P=initial investment, r=interest rate, A=amt after t-yrs
A=3500e^.005*3=$3552.90
Answer by ikleyn(53875)  (Show Source):
You can put this solution on YOUR website! .
Mary has $3,500 in a savings account earning 4 1/2% annual interest that is compounded continuously.
How much will be in the account at the end of 3 years?
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Calculations in the post by @lwsshak3 are incorrect and lead to wrong answer.
I came to bring a correct solution.
Formula for continuous compounding: A =  ,
where P is initial investment, r is the interest rate, A is the amount after t years.
A =  = $4005.88, to the last cent. ANSWER
Solved correctly.
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