Question

1) Mike invests $2,316 in a retirement

account with a fixed annual interest rate of
3% compounded continuously. What will
the account balance be after 17 years?

Answer 1

$3828 approx

Explanation:

Given data

Principal=$2316

Rate= 3%

Time= 17 years

The compound interest formula is

A=P(1+r)^t

substitute

A=2316(1+0.03)^17

A=2316(1.03)^17

A=2316*1.652847

A=$3827.99

Hence the account balance after 17 years is $3828 approx