Use the compound interest formula for continuous compounding to determine the accumulated balance after the statedperiod.
-A $49,433 deposit in an account with an APR of 3.6% compounded continuously for 10 years.

Question

Quizplus · Accepted Answer

The formula for continuous compounding is $A = Pe^{rt}$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (decimal), and $t$ is the time the money is deposited or borrowed for, in years. For this problem, $P = 49433$, $r = 0.036$, and $t = 10$. Plugging these values into the formula gives $A = 49433e^{0.036 \times 10} = 49433e^{0.36}$. Calculating this gives approximately $A = 70,853.77$.

Use the Compound Interest Formula for Continuous Compounding to Determine