Question

Suppose you invest $2000 at an annual interest rate of 4.9% compounded continuously. How much will you have in the account after 20 years?

Answer 1

To find this we will first find out how much interest they accrued within 20 years. We'll do that by multiplying all the given factors:

2000 x 0.049 x 20 = 1960
This shows they have made $1,960 in accrued interest. We'll add this sum by the original deposit they made of $2,000.

2000 + 1960 = 3960

In the end of 20 years of accrued interest, the person will have a total of $3,960 in their account.