Question

Suppose you invest $5000 at an annual interest rate of 6.3% compound continuously. How much will you have in the account after 3 years?

Answer 1

Use the formula for continuous compounding:  A = Pe^(rt), where r is the interrest rate as a decimal fraction.  Then, 

A = $5000e^(0.063*3) = $6040.20 (answer)