Question

You deposit $17,289 into an account that earns 3.14% annual interest compounded continuously. How much money will you have after 42 years?

Answer 1

For an initial amount P deposited with an annual interest r, after t years, the total amount A is given by:

`A=P\cdot(1+r)^t`

Then, if P = $17,298, r = 3.14% and t = 42 years, we have:

`A=17298\cdot(1+0.0314)^(42)\approx\text{ \$}63377.52`