Question

An account with an initial deposit of 3,500 earns 7.25% annual interest, compounded continuously. How much will the account be worth after 30 years? Round to the nearest cent.

Answer 1

Answer: $28,575.05

Explanation:

Formula: FV = (1+r/n)^nt

FV = future value of the deposit

P = principal or amount of money deposited

r = annual interest rate (in decimal form)

n = number of times compounded per year

t = time in years.

3,500(1+7.25%)^30=28,575.05468