Question

FlybynightSavings is offering a savings account that pays 32% compounded continuously. How much interest would a deposit of $2,000 earn over 10 years

Answer 1

Answer: $47,065.06

Step-by-step explanation:

When interest is compounded continuously, the formula is:

Future value = Principal * e^(rate * time period)

= 2,000 * e⁰.³² ˣ ¹⁰

= $49,065.06

Amount of interest earned:

= $49,065.06 - 2,000

= $47,065.06