Question

PLEASE HELP QUICK!!!

COMPOUND INTEREST!!!
$600 is deposited in an account that pays 7% annual interest, compounded continuously. What is the balance after 5 years?

Answer 1

9514 1404 393

Answer:

$851.44

Explanation:

The balance is given by the formula ...

A = Pe^(rt) . . . . principal P, interest rate r, t years

Using the given numbers, we find the balance to be ...

A = $600·e^(0.07·5) ≈ $851.44