Question 878833: Suppose you invest $1500 at an annual interest rate of 5% compounded continuously. How much will you have in the account after 4 years? Round the solution to the nearest dollar.
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! Suppose you invest $1500 at an annual interest rate of 5% compounded continuously. How much will you have in the account after 4 years? Round the solution to the nearest dollar.
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formula for continuous compounding: A=Pe^rt, P=initial investment, r=interest rate, t=number of years, A=amount after t-years
for given problem:
P=1500
r=5%
t=4
A=1500*e^(.05*4)
A=1500*e^(0.2)≈$1832
How much will you have in the account after 4 years? $1832
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