Question

You

have $104,986.99 in your bank account. The interest ratein your
account is 5%. How
much interest will you earn in your account over the next fiveyears
with continuous compounding?

Answer 1

$29,005.97

Explanation:

Cn = Co * (1 + i)^n

Cn = 104,986.99(1+.05/1)^(1*5)

Cn = 104,986.99(1+.05)^5

Cn = 104,986.99(105)^5

Cn = 104,986.99(1.2763)

Cn = 133,992.96, total money at end

133,992.96-104,986.99= $29,005.97, interest accumulated