Question

You deposit $3000 in an account earning 4% interest compounded continuously. How much will you have in

Answer 1

Answer: $3,664.21

Formula: $A=Pe^{rt}$

• P = principle/original amount = $3000
• r = rate of interest = 4% = 0.04
• t = time period (in years) = 5
• A = the new amount
• e = Euler's number ≈ 2.718...

Substitute in the values:

$A=(3000)e^{(0.04)(5)} =(3000)e^{0.2} =(3000)(1.2214)=3664.208$

Approximately $3,664.21

I think this is how you solve it o_O