Question 669620
{{{A=Pe^(rt)}}} Start with the continuous compounding formula.



{{{A=1000*e^(0.06*5)}}} Plug in {{{P=1000}}}, {{{r=0.06}}} (the decimal equivalent of 6%), and {{{t=5}}}.



{{{A=1000*e^(0.3)}}} Multiply {{{0.06}}} and {{{5}}} to get {{{0.3}}}.



{{{A=1000*1.349858807576}}} Raise 'e' (which is approximately 2.71828) to the power {{{0.3}}} to get {{{1.349858807576}}} (this value is approximate).



{{{A=1349.858807576}}} Multiply {{{1000}}} and {{{1.349858807576}}} to get {{{1349.858807576}}}.



{{{A=1349.86}}} Round to the nearest hundredth (ie to the nearest penny).



The balance after five years is <font color="red">$1349.86</font>