Question 922678: how much money will be in a savings account if the initial deposit was $500 and the interest rate is 4% compounded continuously for 5 years, 9 months
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! how much money will be in a savings account if the initial deposit was $500 and the interest rate is 4% compounded continuously for 5 years, 9 months
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Formula for continous compounding: A=Pe^rt, P=initial investment, r=interest rate, t=number of years, A=amt after t-years
..
For given problem:
P=500
r=4%
t=5.75 yrs
A=500e^(.04*5.75)
A=629.30
How much money will be in a savings account? $629.30
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