Question

FlybynightSavings.com is offering a savings account that pays 33% compounded continuously. How much interest would a deposit of $3,000 earn over 10 years? (Round your answer to the nearest cent.)

Answer 1

The exact calculations:
Principal, P=3000
interest rate = 33% per year
Period, t=10 years

Future value

`F=Pe^(it)`

`=3000e^(0.33*10)`

`=81337.92`

Interest
= future value - principal
= 81337.92-3000
= 78337.92 (to the nearest cent)