Question

$600 is deposited in an account that pays 7% annual interest, compounded continuously. What is the balance after 5 years? Please help me!!!

Answer 1

Answer:

$842

Step-by-step explanation:

The Total amount after a compound interest can be calculated using the formula:

$T = P(1 + \frac{R}{100})^{n}$

where P is the amount of deposit, R is the rate of interest, n is the duration.

Hence by substituting the values, we get:

$T = 600(1 + \frac{7}{100} )^5$

T = $842 (3 sf)