Question

Use the formula for continuous compounding to compute the balance in the account 1, 5, and 20 years. Also, find APY for the account. A 10,000 deposit in an account with an APR of 3.5%.

Answer 1

We are given the following information:

Deposit = $10,000

APR = 3.5% = 0.035

The balance in the account is given as shown below: