Question

Find the amount in a continuously compounded account for the following condition.
​Principal, ​$3000​; Annual interest​ rate, 5.4​%; ​time, 5 years

Answer 1

$\bf ~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \ 3000\\ r=rate\to 5.4\%\to \frac{5.4}{100}\to &0.054\\ t=years\to &5 \end{cases} \\\\\\ A=3000e^{0.054\cdot 5}\implies A=3000e^{0.27}\implies A\approx 3929.89$