Question

How much would sophie have in her account at the end of 10 years if she deposit $2,000 into the account today if she earned 8 percent interest and interest is compounded continuously?

Answer 1

To calculate the amount that Sophie will have at the end of 10 years given that she deposited $2000 that earns a rate of 8% will be given by:
A=P(1+r/100)^n
where;
A=future amount
P=principle
r=rate
n=time;
from our question;
P=$2000
r=8%
n=10 years;
Thus;
A=2000(1+8/100)^10
A=2000(1+0.08)^10
A=2000(1.08)^10
A=4,317.85
Therefore at the end of 10 years Sophie will have $4,317.85