Question

Suppose you invest $1800 at an annual interest rate of 3.3% compounded

continuously. How much will you have in the account after 1.5 years?

Answer 1

$1,890

Explanation:

To find the amount, we use the compound interest formula here

we have this as;

A = P(1 + r/n)^nt

Where ;

P is the amount invested which is $1,800

r is the interest rate which is 3.3% annually (3.3/100 = 0.033)

n is the number of times yearly interest is compounded which is 1 time yearly

t is the number of years which is 1.5 years

substituting these values, we have

A = 1800( 1 + 0.033)^(1 * 1.5)

A = 1,890