Question

Moneysaver's Hank offers savings account that eams 3% interest compounded continuously. If Lucy deposits $1200, how much will have in the account after six years, assuming she makes no withdrawals?

Answer 1

Answer:1442.41086

Explanation:

So first it would continue 3% higher so not 18% higher

first 3% higher 1200

So 1236

Then 3% of 1236

so 1273.08

The 3% of that to 1311.2724

The 3% of that to 1350.61057

The 3% of that to 1400.39889

The 3% of that to 1442.41086

Answer 2

1251

Explanation:

Use the formula for calculating compound interest A=P0ert where A is the unknown, P0=1200, r=0.014, and t=3. Substitute the values into the formula and simplify.

A=1200e0.014⋅3

A=1200e0.042

A=1200(1.0428...)

A=1251.47

Therefore, after three years, the balance in the account is A≈1251.