Question
1. You deposit $100,000 at an annual rate of 5.6%. If interest is accrued following continuous compounding, how much will you have accumulated by the end of three and a half years?
Answers
helper
A(t) = Pe^rt
A(t) = 100,000(2.718281)^((0.056 * 3.5))
A(t) = 100,000(2.718281)^0.1960
A(t) = 100,000(1.216527)
A(3.5) = 121,652.70
100,000 + 121,652.70 = 221,652.70
A(t) = 100,000(2.718281)^((0.056 * 3.5))
A(t) = 100,000(2.718281)^0.1960
A(t) = 100,000(1.216527)
A(3.5) = 121,652.70
100,000 + 121,652.70 = 221,652.70