Question

Mr. Anderson put $1,000 into an account that draws 6.5% interest compounded continually. How much money will be in the account in 30 years if he makes no deposits or withdrawals? *

A $ 4,868.8
B $7,028.69
C $6,614.37
D $5,287.65

Answer 1

You'll need the formula:

Total = principal * e ^(rate * years)

where "e" is the transcendental number 2.718281828459

Total = $1,000.00* 2.718281828459 ^ (.065 * 30)

Total = $1,000.00* 2.718281828459 ^ 1.95

Total = $1.000.00 * 7.0286875806

Total = $7,028.69

Answer is B

Explanation:

Answer 2

I is th interest
P is the principal or original amount
R is the rate
N is the number of years
Since r must be decimal , we divide 6.5% by 100