Question

Suppose you invest 1600 dollars at an annual interest rate of 4.6% compounded continuously how much will you have in the account after 4 years?

Answer 1

Hello!

We will add up 0.046 of our number each year for four years as seen below.

1600(0.046)=73.6
1600+73.6=1673.6

1673.6(0.046)≈76.99
1673.6+76.99=1750.59

1750.59(0.046)≈80.53
1750.59+80.53=1831.12

1831.12(0.046)≈84.23
1831.12+84.23=1915.35

Therefore, you will have about $1,915.35 in your account after 4 years.

I hope this helps!