Question

$3000 is deposited in an account

that pays 5% annual interest for
10 years. How much more would
be in the account if the interest
were compounded continuously
rather than quarterly?
$[ ? ]

Answer 1

Answer:$4941.02

Explanation:

Compound interest =A=P(1+r/n)^nt

A=amount

p=principal

R,=rate in decimal

N=number of times interest is compounded which is 12months in a year .

T=time (years)

A=3000(1+0.05/12)^12×10

A=3000(1.004166)^120

A=3000(1.647009)

A=$4941.02