Question

Suppose you invest $2000 in a retirement alarm in account with a fixed annual interest rate of 5.8%. How much money would be in your account after twenty years if the interest compounds continuously?

Answer 1

Answer:

$4320

Step-by-step explanation:

1 year

5.8% of $2000

5.8/100 = 0.058

0.058 x 2000 = $116

2000 + 116 = $20116 (owed after 1 year)

20 years

$2000 + ($116 x 20)

$2000 + $2320 = $4320