Question

If you deposit 4500 in an account paying 3.2% interest continually home much will the account balance be after 1.5 year

Answer 1

We conclude that the total amount accrued, principal plus interest, from compound interest on an original principal of $4,500.00 at a rate of 3.2% per year compounded continuously over 1.5 years is $4,721.27.

Explanation:

Given

• Principle P = 4500 (Let say in $)

• Interest rate r = 3.2% = 0.032

• Time period t = 1.5 years

To determine

Accrue Amount A = ?

Using the formula

`A\:=\:Pe^(rt)`

substitute r = 0.032, P = 4500, and t = 1.5

`A\:=\:4,500.00\left(2.71828\right)^(\left(0.032\right)\left(1.5\right))`

A = $ 4721.27

Therefore, we conclude that the total amount accrued, principal plus interest, from compound interest on an original principal of $4,500.00 at a rate of 3.2% per year compounded continuously over 1.5 years is $4,721.27.