Question

Gertrude makes a one time deposit of $1200 into an account that pays 7% annual interest compounded continuously. Assuming Gertrude makes no additional deposits or withdraws. how much money would be in the account after 3 years? Round to the nearest penny.​

Answer 1

Answer:$14701

Step-by-step explanation:

1) at the end of the first year the account will be 1*(12 000)+0,07*(12 000)=1,07*12 000,

2) at the end of the second year 1*(1.07*12 000) + 0.07*(1.07*12 000) = 1.1449*12 000,

3) at the end of the third year 1*(1,1449*12 000) + 0.07*(1,1449*12 000) = 1.225*12 000 = 14,700.516 = 14701

Answer: $14701