Question

An initial deposit of $1,000 is made into a savings account that is compounded continuously at 3% interest. How much money will be in the account after 18 years?

Answer 1

$1700

Explanation:

Given data

Principal P=$1000

Rate r= 3%

Time T= 18years

Required

The final amount A

The expression for the compound interest is

A= P(1+r)^t

substitute

A=1000(1+0.03)^18

A=1000(1.03)^18

A= 1000*1.70

A=$1700

Hence the final amount after 18 years is $1700