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e-lub [12.9K]
2 years ago
15

If you put $1,500 in a savings account that pays 4% interest compounded continuously, how much money will you have in your accou

nt in 5 years? Assume you make no additional deposits or withdrawals.
Mathematics
1 answer:
Ymorist [56]2 years ago
4 0
For investments with continuous compounding, the formula to use is

F = Pe^(rn)

where F is the future worth, P is the present worth, r is the interest rate, and n is the number of years.

F = ($1500)e^(0.04*5)
F = $1832.1

In 5 years, your account would have $1832.1.
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