Ask Question
15 May, 22:21

Suppose that money is deposited daily into a savings account at an annual rate of $19,000. If the account pays 5,5 % interest compounded continuously, estimate the balance in the account at the end of 6 years.

+3
Answers (1)
  1. 15 May, 23:00
    0
    Answer: $26,248.39

    Explanation: the formula for calculating continuous compounding is

    P x e^ (rate) (time)

    P=Principal

    R=Rate

    T = Time

    therefor the savings of $19,000 at the rate of 5.5% for 6 years is calculated thus:

    =$19,000 x e^ (0.055) (6)

    =$19,000 x e^ (0.33)

    =$26,248.39
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose that money is deposited daily into a savings account at an annual rate of $19,000. If the account pays 5,5 % interest compounded ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers