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aleksklad [387]
3 years ago
8

FlybynightSavings is offering a savings account that pays 32% compounded continuously. How much interest would a deposit of $2,0

00 earn over 10 years
Business
1 answer:
zhenek [66]3 years ago
7 0

Answer: $47,065.06

Explanation:

When interest is compounded continuously, the formula is:

Future value = Principal * <em>e</em>^(rate * time period)

= 2,000 * <em>e⁰.³² ˣ ¹⁰</em>

= $49,065.06

Amount of interest earned:

= $49,065.06 - 2,000

= $47,065.06

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