Suppose you invest $5000 at an annual interest rate of 6.3% compound continuously. How much will you have in the account after 3 years?

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asked Feb 16, 2019 27.7k views

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Rob Cowell · Answer 1 · 2019-02-21T16:07:52+0000

Use the formula for continuous compounding: A = Pe^(rt), where r is the interrest rate as a decimal fraction. Then,

A = $5000e^(0.063*3) = $6040.20 (answer)

Suppose you invest $5000 at an annual interest rate of 6.3% compound continuously. How much will you have in the account after 3 years?

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