You deposit $1500 in an account that pays 5% annual interest compounded continuously what is the balance after 6 years.

Hello kiddio lets figure this out!

The formula for simple interest is I = P*R*T where I = interest, P = Principal (original amount), R is the rate as a decimal, and T is time in years. So I = 1500 * (.05) * 6 = 1500 * (0.30) = $450. The total amount you have after 6 years is the amount you started with ($1500) plus the interest ($450) which is $1950. The formula for yearly compounding is A = P (1 + r) t where A = Accumulated or final amount P = Principal ($1500) r = interest rate as a decimal (0.05) t = time (6 years) A = 1500 * (1 + 0.05) 6 = 1500 * (1.05) 6 = $2010.14

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