Question

15. John deposits $4,700 at 5.03% interest, compounded continuously for five years. What is his ending balance? How much interest did the account earn? Use the compounding

continuously formula B = Pe^(rt)

Answer 1

What is his ending balance?

B =
`Pe^(rt)` =
`4700e^((.0503.5))` = $6043.98

How much interest did the account earn?

$1343.98