You invest $1000 in an account. How do you find the value of the accounts after 4 years with a 4.2% interest compounded continuously?

1 Answer
Dec 18, 2016

Answer:

Amount after #4# years will be #1182.94(2dp)#

Explanation:

Formula for continuously compounded amount is #A=P*e^(r/100*t)# ;

P=principal=100 , r =rate of interest=4.2% , t=time=4 yrs ; e=2.71828.

#A=1000*2.71828^(4.2/100*4)=1182.94(2dp)#

Amount after #4# years will be #1182.94(2dp)#[Ans]