Question

Today you put $1000 in the bank. your bank pays 5% interest, continuously compounded. in 3 years, how much money will you have in the bank (rounded to the nearest dollar)?

Answer 1

With continuous interest,
$F=Pe^{rt}$
where 
F=future value
P=principal = 1000
r=rate=5%
t=time=3 years

$F=Pe^{rt}$
$=1000e^{0.05*3}$
$=1000e^{0.15}$
$=1161.83$

Answer: The accumulated amount after three years is $1161.83