Question

You leave $5,000 in an account for 20 years. The account compounds interest yearly at a rate of 10%. To the nearest dollar, how much money do you have at the end of the 20 years?

You leave $5,000 in an account for 20 years. The account compounds interest CONTINUOUSLY at a rate of 10%. To the nearest dollar, how much money do you have at the end of the 20 years?

Answer 1

5000*1.1^20
vs
5000*(e^.1)^20

Answer 2

1. 33637
2. 36,945