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

Question

valkas [14]

4 years ago

5

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?

Mathematics

1 answer:

FinnZ [79.3K] · Answer 1 · 2022-01-04T09:50:48+03:00

FinnZ [79.3K]4 years ago

7 0

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)