Question

$700 is deposited in an account with 5% interest rate, compounded continuously. What is the balance after 12 years?​

Answer 1

Explanation:

Continuous compounding formula

FV = PV e^(rt) PV = $ 700 r = .05 t = 12

FV = future value = $ 700 e^(.05 * 12) = $ 1275.48