Question

You deposit $500 into an account that pays 4.25% annual interest compounded continuously. What is the balance after 10 years?

Answer 1

`~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^(rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$500\\ r=rate\to 4.25\%\to (4.25)/(100)\dotfill &0.0425\\ t=years\dotfill &10 \end{cases} \\\\\\ A=500e^(0.0425\cdot 10)\implies A=500e^(0.425)\implies A\approx 764.80`