Question

Suppose you invest $500 at an annual interest rate of 8.2% compounded continuously. How much will you have in the account after 15 years?

By the way this is an exercise, so I already now the answer, but I don't know how to solve the question.

Answer 1

Here is the formula that your going to need to use A=P(1+r/n)^nt
So P=500, R=0.082, N=1, T=15
Plug it into your equation and you have A=500(1+0.082/1)^(1)(15)
Simplify what's in the parenthesis A=500(1.082)^(1)(15)
Multiply your exponents A=500(1.082)^15 Then A=500(3.26)
Finally you multiply your last two numbers to get A=1,630
So after 15 years you would have $1,630
I hope this helped you :)