Question

Lisa’s grandmother left her a $100,000 inheritance. She wants to invest the money in an account paying 7.2% interest compounded continuously. How much money will be in the account after 30 years?

Answer 1

the earning of the compound interest can be calculate with this formula:

$A=P(1+i)^t$

and we can replace, P for the principle, i for the interest and t with the time so:

$\begin{gathered} A=100000(1+0.072)^{30} \\ A=805088.34 \end{gathered}$