Question

Suppose you invest $950 at an annual interest rate of 6.5% compounded continuously. How much will you have in the account after 10 years? Round the solution to the nearest dollar

Answer 1

Present value, P = 950
interest rate, i = 6.5% continuous
Number of periods, n = 10 years

Future value
$F=Pe^{it}$
$=950e^{.065*10}$
$=1819.76$   to the nearest cent