$700 is deposited in an account with 5% interest rate, compounded continuously. What is the balance after 12 years?

Question

asked Mar 14, 2024 225k views

1 Answer

Oberfreak · Answer 1 · 2024-03-20T13:20:47+0000

Explanation:

Continuous compounding formula

FV = PV e^(rt) PV = $ 700 r = .05 t = 12

FV = future value = $ 700 e^(.05 * 12) = $ 1275.48