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Moneysaver’s Bank Offers a savings account that earns 5.5% interest compounded continuously. If Maria deposits $2300, how much will she have any account after five years, assuming she makes no withdrawals? Round your answer to the nearest cent.

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The formula for calculating continuous compound interest is expressed as

A = Pe^rt

where

A is the amount after t years

P is the principal or initial amount deposited

r is the interest rate

t is the number of years

e represents exponent

From the information given

P = 2300

r = 5.5/100 = 0.055

t = 5 years

Thus,

A = 2300 x e^(0.055 x 5)

A = 2300 x e^0.275

A = 3028.02

She will have $3028.02 in her account after 5 years

User Syed Jameel Ahmed
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