Question

Mr. Goodwin received a paycheck for $1200. He deposited the money into a

bank account. The account has an interest rate of 6% compounded
continuously. This is the first and last deposit Mr. Goodwin makes into this
account. How much money will be in the account in 15 years?

Answer 1

Answer: There will be $2951.52 money in the account in 15 years

Explanation:

Given: Principal ; P = $1200

Interest rate;r = 6% compounded continuously

Time; t = 15 years

As we know the compounded continuously formula is given by

`A= Pe^(rt)` where A is amount , P is principal , r is rate, t is time and e be the mathematical constant.

So according to question we have

`A= 1200 e^(0.06 * 15) = 1200 e^(0.9) \approx 2951.52`

Hence, there will be $2951.52 money in the account in 15 years