Question

$1250 is deposited in an account that pays 6.5% annual interest, compounded continuously. What is the balance after 8 years?

Answer 1

$2102.53

Explanation:

First, you can use the formula `A=Pe^(rt)`
P is the initial amount of money deposited (1250)
e is a constant
r is the rate which will be written as a decimal (0.065)
and t is the 8 years.
so the equation would be
`A=1250e^(0.065*8)`
this will give you an answer of $2102.53