Question 1061222: I have been trying to figure out this answer for a while and need some help. If you could provide the steps that you went through to get the answer, that would be so helpful. Thank you so much!
You invest $3,000 in an account with an interest rate of 5.5% compounded continuously. How much money would be in the account after 5 years? Round your answer to the nearest whole number.
Answer by rothauserc(4718)   (Show Source):
You can put this solution on YOUR website! The formula to use is
:
A = Pe^(rt), where A is the future amount, P is the principal, e is the constant 2.71828, r is the rate and t is time in years
:
A = 3000 * (2.71828)^(0.055 * 5) = 3949.59
:
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The amount after 5 years is $3,950
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Are you asking how to derive the formula for A?
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