Question

you deposit $2000 in an account earning 6% interest compounded continuously. How much will you have in the account in 15 years?

Answer 1

Answer:

$4793.12

Step-by-step explanation:

The first step in working out the amount after 15 years is to convert the percentage of 6% to a decimal. You can do this by dividing 6 by 100, this gives you 0.06. This is because a percentage is out of 100.

The next step is to add 1 to the value of 0.06, this gives you 1.06. You would add 1 as you are working out a percentage increase.

The final step is to multiply the amount of $2000 by the value of 1.06 to the power of 15, this gives you 4793.12 (rounded to 2 decimal places). This is because we are working out the percentage of $2000 and then adding that on to be recaluclated  with the new amount.

1) Divide 6 by 100.

$6/100=0.06$

2) Add 1 to 0.06.

$1+0.06=1.06$

3) Multiply 2000 by 1.06 to the power of 15.

$2000*1.06^{15}=4793.12$