Question

Suppose you deposit $1000 in an account paying 3% annual interest, compounded continuously. Use A=Pe^rt to find the balance after 10 years

Answer 1

$1,349.8

Explanation:

Using the formula given:

A=Pe^rt, where

A= ending amount

P= beginning amount

e= Euler’s number that is approximately 2.718

r= rate: 3%=0.03

t= time: 10 years

A= $1,000*(e^0.03*10)

A= $1,000*(e^0.3)

A= $1,349.8

According to this, the answer is that the balance after 10 years is $1,349.8.