You are depositing $1000 in a savings account at 6% annual interest rate, compounded continuously. What will the balance be after 5 years? Round your answer to the nearest hundredth.

Answer 1

First you multiply your starting balance (A) by .06 (or if your percentage[p] was larger like 43%, it would be .43 because of the way math works.) you will now have x% of your starting balance, multiply that number by the number of Z number of years. Now you have Y ( The percentage of your starting balance over z years), Add Y to your starting balance (A).

A*p = x% of starting number
x*z= y% for the number of years
y+A= new balance

Answer 2

amount = 1000 e^(.06*5)
= 1000 e^.3 = 1349.86

Ignore the gibberish of the previous reply.

Answer 3

Sorry, i missed the fact that it was continuously compounded, but Reiny there was no need to make me feel incompetent.