SOLUTION: You deposit $500 in an account that pays 3.5% annual interest compounded continuously. To the nearest dollar, how much interest have you earned after 1 year?

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Question 970492: You deposit $500 in an account that pays 3.5% annual interest compounded continuously. To the nearest dollar, how much interest have you earned after 1 year?
Found 2 solutions by lwsshak3, Boreal:
Answer by lwsshak3(11628) About Me  (Show Source):
You can put this solution on YOUR website!
You deposit $500 in an account that pays 3.5% annual interest compounded continuously. To the nearest dollar, how much interest have you earned after 1 year?
***
Formula for continuous compounding: A=Pe^rt, P=initial investment, r=interest rate, A=amt after t-years.
A=500e^.035*1
A=500e^.035
A=518
How much interest have you earned after 1 year? $518

Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
This is using e
P=Po e^rt ;r=0.035; t=1
P=$500* exp (.035)=500* (1.0356)
P=$517.81