Question

Suppose 2,800 is deposited into an account at a 2.5% interest rate, compound continuously. If there are no other deposits or withdrawals, find the account balance after 25 years.

Answer 1

the account balance after 25 years is 5,231

Explanation:

The computation of the account balance after 25 years is shown below:

Amount = Principal × e^{rate, time period}

= 2,800 × e^{2.5%,25}

= 5,231

hence, the account balance after 25 years is 5,231