Question

Find the amount in a continuously compounded account for the following condition. ​Principal, ​$5000​; Annual interest​ rate, 5.3​%; ​time, 3 years
The balance after 3 years is:

Answer 1

Total = Principal * e^(rate*years)
Total = 5,000 * 2.718281828^(.053*3)
Total = 5,000 * 2.718281828^.159
Total = 5,000 * 1.1723379466
Total = 5,861.69