Question

If $4500 is invested at 10% annual interest, which is compounded continuously, what is the account balance after 3 years, assuming no additional deposits or withdrawals are made?

Answer 1

$6074.36

Explanation:

The formula for continuous compounding is

F = Pe^(rt)

F = $4500 × e^(0.1 × 3)

F = $6074.36

Answer: $6074.36