Question

My questions isDetermine the account balance at 5 years if $20,000 was invested in an account that compounds continuously at 4.5% per year.

Answer 1

we must use this formula

$C=c(1+t)^n$

Where C is the total, c the initial capital, t the percent and n the number of years

so replacing

$C=20000(1+0.045)^5$

and solving

$\begin{gathered} C=20000(1.246) \\ C=24923.64 \end{gathered}$

the account balance at 5 years is $24,923.64