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Danni placed $5700 in a savings account which compounds interest continuously at a rate of 2.1%. How much will she have in the account after 4 years
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12 votes
12 votes
Danni placed $5700 in a savings account which compounds interest continuously at a rate of 2.1%. How much will she have in the account after 4 years

User Spandey
by
2.6k points

2 Answers

21 votes
21 votes

Answer:

$6,194.09

Step-by-step explanation:

The amount that Danni will have in her savings account (FV) can be determined using a Financial Calculator as follows :

PV = - $5700

N = 4

I/Yr = 2.1 %

P/Yr = 1

PMT = $0

FV = ??

The Future Value (FV) is $6,194.09

Thus, she will have in the account after 4 years an amount of $6,194.09

User Raul Gonzalez
by
3.0k points
15 votes
15 votes

Answer:

Step-by-step explanation:

A=Pert

A=5700e(0.021)(4)

A=5700e0.084

A=6199.4846...

Rounded to the nearest dollar, A≈$6199.

User R Poon
by
2.5k points
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