Question

You deposit $2000 in an account earning 4% interest compounded continuously. How much money will you

Answer 1

Answer:

$3,644.24

Step-by-step explanation:

You are going to want to use the continuous compound interest formula, which is shown below.

$A = Pe^{rt}$

P = principal amount

r = interest rate (decimal)

t = time (years)

First change 4% to its decimal form:

4% -> $\frac{4}{100}$ -> 0.04

Next, plug in the values into the equation:

$A=2,000e^{0.04(15)}$

$A=3,644.24$

After 15 years, you will have $3,644.24