Question

You deposit $3000 in an account earning 4% interest compounded continuously. How much will you have in
the account in 5 years?

Answer 1

Answer: $3,664.21

Formula: $A=Pe^{rt}$

• P = principle/original amount = $3000
• r = rate of interest = 4% = 0.04
• t = time period (in years) = 5
• A = the new amount
• e = Euler's number ≈ 2.718...

Substitute in the values:

$A=(3000)e^{(0.04)(5)} =(3000)e^{0.2} =(3000)(1.2214)=3664.208$

Approximately $3,664.21

I think this is how you solve it o_O

Answer 2

Approximately there will be $3,664 in your account in 5 years.

What is compound interest?

The interest on a loan or deposit that is calculated using both the initial principal and the accrued interest from prior periods is known as compound interest.

Simple math may be used to demonstrate this: If you have $100 and it generates 5% interest annually, you will have $105 at the end of the first year. You will wind up with $110.25 at the conclusion of the second year.

Solution:

Since interest is compounded continuously, we need to find the future value.

A = Pe^rt, where:

P is the initial deposit

r  is the rate of interest

t is the time period of deposit

A is the future value

Given,

P = $3000

r = 4%

t = 5 yrs

Therefore, future value(A) = 3000 × e^(0.03)×(5)

                                         = 3664

Hence you will have $3664 in your account approximately.

Learn more about "Compound Interest" here-

brainly.com/question/24924853

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