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kumpel [21]
3 years ago
14

If $1,800 is invested in a savings account offering interest at a rate of 4.5% per year, compounded continuously, how fast is th

e balance growing after 3 years
Physics
1 answer:
Archy [21]3 years ago
3 0

Answer:

The total amount  after 3 years is = $ 2054.10

Explanation:

Given data

Principal Amount (P) = $ 1800

Rate of interest (R) = 4.5 %

Thus the total amount after 3 years compounded annually is given by the formula =  P × [1 +\frac{R}{100}  ]^{3}

⇒ 1800 × [1 +\frac{4.5}{100}  ]^{3}

⇒ 2054.10

Thus the total amount  after 3 years is = $ 2054.10

Compound interest earned in three years = 2054.10 - 1800 = $ 254.10

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