Question

$1000 are deposited in an account with a 8.5% interest rate, compounded continuously.

What is the balance after 5 years?

F= ?

Answer 1

`~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^(rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$1000\\ r=rate\to 8.5\%\to (8.5)/(100)\dotfill &0.085\\ t=years\dotfill &5 \end{cases} \\\\\\ A = 1000e^(0.085\cdot 5) \implies A \approx 1529.59`