Question

Suppose you invested $500 at an annual interest rate of 7.1 compounded continuously. How much will you have in the account after 10 years? Please show work.

Answer 1

$\bf \qquad \textit{Continuous Interest Earned Amount}\\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{compounded amount}\\ P=\textit{original amount deposited}\to& \ 500\\ r=rate\to 7.1\%\to \frac{7.1}{100}\to &0.071\\ t=years\to &10 \end{cases} \\\\\\ A=500e^{0.071\cdot 10}$