# 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

#### Answer:

#### 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