Question

You deposit $1500 in an account that pays 3.25% annual interest compounded continuously. What is the balance after 5 years?​

Answer 1

$1760

Explanation:

The Total amount after a compound interest can be calculated using the formula:

`T = P(1 + (R)/(100))^(n)`

where P is the amount of deposit, R is the rate of interest, n is the duration.

Hence by substituting the values, we get:

`T = 1500(1 + (3.25)/(100))^5`

T = $1760 (3 sf)