If $100 is deposited in a savings account that earns interest at an annual rate of 4 1/2% compounded continuously, what is the value of the account at the end of two years?
2 Answers
Jun 8, 2018
See alan_n
Jun 9, 2018
Explanation:
The formula for compound interest calculation where the compounding occurs continuously is:
Where:
In this example:
NB: For those interested in the derivation of the formula it stems from the limit definition of