Question
suppose you invest 17000 at an annual interest rate of 3.9% compounded continuously? how much will u have in the account after 2.5 years?
Answers
drwls
Whqt do you mean by compounding "continuously?
Daily? Every hour?
If there is daily compounding, the investment increases by a factor
[1 + (0.039/365])^365 = 1.039768 per year. After 2 1/2 years that factor becomes
1.039768)^2.5 = 1.102406
Multiply that by the initial 17,000 and you have $18,740.90
Daily? Every hour?
If there is daily compounding, the investment increases by a factor
[1 + (0.039/365])^365 = 1.039768 per year. After 2 1/2 years that factor becomes
1.039768)^2.5 = 1.102406
Multiply that by the initial 17,000 and you have $18,740.90