Use the formula for continuous compounding with the data from the original example: $10,000 invested at 3% for 1 year. Record the amount to 5 decimal places. Use a calculator.

Question

asked Dec 7, 2022 89.9k views

1 Answer

Manolosavi · Answer 1 · 2022-12-11T15:20:26+0000

Answer:

$10,304.54534

Explanation:

The compound interest formula is ...

A = Pe^(rt)

Substituting the given values, we get ...

A = $10,000·e^(0.03·1) ≈ $10,304.54534