Question

If you put $1,000 in a savings account that pays 5% interest compounded continuously, how much money will you have in your account in 10 years? Assume you make no additional deposits or withdrawals.

Answer 1

1648.72 is the nonrounded awnser
I hioe this helps

Answer 2

Given:
Principal = 1,000
rate = 5%
term = 10 years

The continuous compound formula is: A = Pe^rt

e is a function in the calculator. However, if you are doing manual computation the value of e is 2.7183 (Napier's number)

A = 1,000 (2.7183)^0.05*10
A = 1,000 (2.7183)^0.5
A = 1,000 (1.6487)
A = 1,648.70

The money you will have in your account in 10 years will amount to 1,648.70.