Question 61863
A bank compounds interest continuously. If you invest $500 at 4% at that bank for 5 years, what will your balance be? Use formula A= 500e^0.04t
where A is the balance in the account and t is in years.
<p>
{{{A = 500e^(.04(5)) = 500e^.2}}}
<p>
Using a calculator, with e = 2.71828, 500e^.2 = 500(2.71828)^.2 = 610.70