Question

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

Answer 1

$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

Answer 2

Step-by-step explanation:

A=Pert

A=5700e(0.021)(4)

A=5700e0.084

A=6199.4846...

Rounded to the nearest dollar, A≈$6199.