Question

Suppose you invest $900 at an annual interest rate of 5.2% compounded continuously. How much will you have in the account after 25 years?

Answer 1

$3302.37

Explanation:

Use the Continuous Compound Amount formula to calculate this.

A = P(e^(rt)), where P is the principal, r is the annual interest rate as a decimal fraction, and t is the number of years.

Here,

A = $900e^(0.052*25)

= $900e^1.3

A = $3302.37 (to the nearest cent)