Question

you invest $1600 into an account that pays an interest rate of 4.75 percent compounded continuously. Calculate the balance after seven years.

Answer 1

Compounding continuously uses the A = Pe^(rt) formula
A = amount in the account after specified period of time
P = principal
e = constant
r = rate (change to decimal)
t = time in years
A = 1600e^(.0475*7)
A = $ 2231.12