Question

You deposit $3000 in an account with an APR 7.5% and continuous compounding. How much will you have after 20 years?

Answer 1

Answer:

I = $4,500

Step-by-step explanation:

Simple Interest (I) = PRT / 100

Where:

P= Principal (Amount deposited) = $3000

R= Rate = 7.5%

T= Time = 20 years.

Simple Interest (I) = PRT / 100

I = ($3000 * 7.5 * 20) / 100

I = $450,000 / 100

I = $4,500.