Determine how much money will be in a savings account if the initial deposit was $1000 and the interest rate is 3% compounded continuously for 5 years, 10 months. (Round your answer to the nearest cent.)

Question

tkhunny · Answer

What;s your plan for this?  You ave seen the formulation, right?

anonymous · Answer

Would it be 1000xe^.03*70  ? But I did that but it wasn't right and I tried different ways too.

tkhunny · Answer

Very good.  Almost!

70 is no good.  That is a number of months.  You need the number of years.  Use 5 + 10/12 = 5.83333333333

You can spot this error by checking consistency.  0.03 is an ANNUAL rate.  You would NEVER use a number of MONTHS with that.

anonymous · Answer

Thank you!