Question

a customer deposits $2000 in a savings account that pays 5.2% interest compounded continuously. how much will be earned between the 3rd and 5th yeards?

Answer 1

The amount of money a customer will earn between 3rd year and fifth year will be given as follows:
FV=p(1+r/100)^n
where:
FV=future value
r=rate
n=time

The amount earned in the first 3 years will be:
FV=2000(1+5.2/100)^3=$2,328.50

The amount earned in 5 years will be:
FV=2000(1+5.2/100)^5=$2,576.97

The amount earned between 3rd and 5th
=2,576.96-2,328.50
=$248.46