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?
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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