Question

You deposit $2500 in an account that pays 3% annual interest compounded continuously. What is the balance in your account after 4 years?

Answer 1

`$2819`

Explanation:

Continuously Compounded Interest

In this case `P = $2500`, `r = 3%`, `t = 4`

`A = 2500xx e^(0.03 xx 4)`
`A ≈ $2819`