Question

A principal amount of $4,700 is deposited into an account paying interest at a rate of 3%, continuously compounded. What will be the account balance after 3 years?

Answer 1

A = Pe^(rt)

A = Final Amount = ?
P = Principal = 4,700
e = euler's number = 2.7183
r = rate = 3/100 = 0.03
t = time (in years) = 3

A = 4,700 * e^(0.03*3)

A = 4,700 * 1.094

A = 5142.62

Therefore, the account balance after 3 years will be $5142.62