Question

Suppose you invest $1500 at an Annual interest rate of 5% compounded continuously. How much will you have in the account after 4 years? Round the solution to the nearest dollar.

Answer 1

So you know the compound continuously formula is $A = Pe^{rt}$. Thus, just plug in. $A = (1500)e^{(.05)(4)}$ Plug that into your calc to get $1832.

Answer 2

Answer:

$1832

Step-by-step explanation:

Principal P= $1500

Rate of interest =r = 5 % = 0.05

Time t = 4 years

Formula for continuous compounding:$A=Pe^{rt}$

Substitute the values in the formula

$A=1500e^{0.05 \times 4}$

$A=1832.10413$

So, you will have $1832 in the account after 4 years.