A principal amount of $4,700 is deposited into an account paying interest at a rate of 3%, continuously compounded. What will be the account balance after 3 years?

Question

Leon Alvarez

Mathematics

20 September, 07:36

A principal amount of $4,700 is deposited into an account paying interest at a rate of 3%, continuously compounded. What will be the account balance after 3 years?

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Ashton Morrow · Answer 1

A = Pe^ (rt)

A = Final Amount = ?

P = Principal = 4,700

e = euler's number = 2.7183

r = rate = 3/100 = 0.03

t = time (in years) = 3

A = 4,700 * e^ (0.03*3)

A = 4,700 * 1.094

A = 5142.62

Therefore, the account balance after 3 years will be $5142.62