Question
What is the balance if principal is $4,800, for 5 years at yearly rate of 6%, and the compounded interest is
the n=∞ [compounded continuously]?
the n=∞ [compounded continuously]?
Answers
Reiny
for "compounded continuously" use e^(it) where i is the stated annual rate and t is the number of years
so Amount = 4800 e^(5(.06))
= 4800 e^.3
= 6479.32
so Amount = 4800 e^(5(.06))
= 4800 e^.3
= 6479.32