Question

2) When Angelina was born, her grandparents deposited $3000 into a college savings account

paying 4% interest compounded continuously. What will the balance be after 10 years?

Answer 1

$4,200.00

Explanation:

Given that the annual interest pay of $3,000.00 savings is 4%, at the end of the year interest will amount to $120.00. Assume that for 10 years, there is no additional or withdrawal to the savings of $3,000.00, the amount in your savings account at the end of the 10 years would be $4,200.00.

That of course is assuming no money is removed.