If you were to place $2,500 in a savings account that pays 5% interest compounded continuously, how much money will you have after 10 years? Assume you make no other deposits or withdrawals.

How would I go about finding this?

Question

Mathematics

Madison

1 August, 23:16

If you were to place $2,500 in a savings account that pays 5% interest compounded continuously, how much money will you have after 10 years? Assume you make no other deposits or withdrawals.

How would I go about finding this?

+1

Answers (1)

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Elianna Long · Answer 1

But using the formula makes this much simpler, P (1+r/n) ^nt

F = Future value

P = present value

r = annual interest rate written as a decimal

t = number of years

F = 2500 (2.71) ^0.5

= 4121.8

If you were to place $2,500 in a savings account that pays 5% interest compounded continuously, how much money will you have after 10 years? Assume you make no other deposits or withdrawals.How would I go about finding this?

If you were to place $2,500 in a savings account that pays 5% interest compounded continuously, how much money will you have after 10 years? Assume you make no other deposits or withdrawals.

How would I go about finding this?