Question

You deposit $5000 in an account earning 3% interest compounded continuously. How much will you have in the

account in 15 years?

Answer 1

• $7841.56

----------------------

Use the compound interest formula:

• 
  `A = Pe^(rt)`

Where:

• A = final amount;
• P = initial deposit = $5000;
• r = annual interest rate = 3% = 0.03;
• t = time period in years = 15.

Plugging in the values, we get:

• 
  `A = 5000*e^(0.03*15)`
• 
  `A = 7841.56`