Question

You deposit $5000 in an account earning 2% interest compounded continuously. How much will you have in the account in 15 years?

Answer 1

The compound interest is given by:
A=p(1+r/100)^n
where:
A=future amount
p=principle
r=rate
n=time in years
Therefore given that, p=$5000, r=2% and n=15 years, the amount after 15 years will be:
A=5000(1+2/100)^15
A=5000(1+0.02)^15
A=5000(1.02)^15
A=6,729.34
We conclude that the amount after 15 years will be $6,729.34