Question

$25,000 is deposited in a bank account with

an annual interest rate of 11%. The interest
is compounded continuously. How much
money will be in the account after 15 years?
Assume no money is withdrawn from the
account.

Answer 1

Let's look at the equation that we need to use:
`Pe^(rt)`. Now let's look at what we know:

P=25,000 (p=money)

r=0.11 (Change 11% into a decimal)

t=15 (t=time)

Now let's plug in the numbers:
`25000e^((0.11*15))`. Then just plug that into a calculator and you'll get 130,174.4957. The answer rounded is $130,174.50

NOTE: "e" is a mathematical symbol, it's not a variable, so when plugging this equation into a calculator make sure you add the "e".

Answer 2

Explanation:

25,000 25,000 25,000 25,000 25,000

1 25,500 26,000 26,500 27,000 27,500

2 26,010 27,040 28,090 29,160 30,250

3 26,530 28,122 29,775 31,493 33,275

4 27,061 29,246 31,562 34,012 36,603

5 27,602 30,416 33,456 36,733 40,263

6 28,154 31,633 35,463 39,672 44,289

7 28,717 32,898 37,591 42,846 48,718

8 29,291 34,214 39,846 46,273 53,590

9 29,877 35,583 42,237 49,975 58,949

10 30,475 37,006 44,771 53,973 64,844

11 31,084 38,486 47,457 58,291 71,328

12 31,706 40,026 50,305 62,954 78,461

13 32,340 41,627 53,323 67,991 86,307

14 32,987 43,292 56,523 73,430 94,937

15 33,647 45,024 59,914 79,304 104,431

16 34,320 46,825 63,509 85,649 114,874

17 35,006 48,698 67,319 92,500 126,362

18 35,706 50,645 71,358 99,900 138,998

19 36,420 52,671 75,640 107,893 152,898

20 37,149 54,778 80,178 116,524 168,187

21 37,892 56,969 84,989 125,846 185,006

22 38,649 59,248 90,088 135,914 203,507

23 39,422 61,618 95,494 146,787 223,858

24 40,211 64,083 101,223 158,530 246,243

25 41,015 66,646 107,297 171,212 270,868

26 41,835 69,312 113,735 184,909 297,954

27 42,672 72,084 120,559 199,702 327,750

28 43,526 74,968 127,792 215,678 360,525

29 44,396 77,966 135,460 232,932 396,577

30 45,284 81,085 143,587 251,566 436,235

31 46,190 84,328 152,203 271,692 479,859

32 47,114 87,701 161,335 293,427 527,844

33 48,056 91,210 171,015 316,901 580,629

34 49,017 94,858 181,276 342,253 638,692

35 49,997 98,652 192,152 369,634 702,561

36 50,997 102,598 203,681 399,204 772,817

37 52,017 106,702 215,902 431,141 850,099

38 53,057 110,970 228,856 465,632 935,109

39 54,119 115,409 242,588 502,882 1,028,619

40 55,201 120,026 257,143 543,113 1,131,481

41 56,305 124,827 272,572 586,562 1,244,630

42 57,431 129,820 288,926 633,487 1,369,092

43 58,580 135,012 306,261 684,166 1,506,002

44 59,751 140,413 324,637 738,899 1,656,602

45 60,946 146,029 344,115 798,011 1,822,262

46 62,165 151,871 364,762 861,852 2,004,488

47 63,409 157,945 386,648 930,800 2,204,937

48 64,677 164,263 409,847 1,005,264 2,425,431

49 65,970 170,834 434,438 1,085,685 2,667,974

50 67,290 177,667 460,504 1,172,540 2,934,771