If you put $1,000 in a savings account that pays 5% interest compounded continuously, how much money will you have in your account in 10 years? Assume you make no additional deposits or withdrawals.
A. $1,628.89

B. $1,051.27

C. $1,648.72

D. $5,525.85

**my answer: A

is that right??

Question

If you put $1,000 in a savings account that pays 5% interest compounded continuously, how much money will you have in your account in 10 years? Assume you make no additional deposits or withdrawals.
A.       $1,628.89

 B.      $1,051.27

 C.      $1,648.72

 D.      $5,525.85

**my answer: A

is that right??

jim_thompson5910 · Answer

what makes you say that

anonymous · Answer

well i did this earlier and i kinda forgot now, but idk if i did it right... but idk completely... :( could u pls explain it to me? :)

jim_thompson5910 · Answer

did you use the formula 

A = Pe^(rt)

?

anonymous · Answer

i think so... :/ for A=amount?

anonymous · Answer

P=principle
r=rate
and t=time??? is that it?

jim_thompson5910 · Answer

A = final amount, yes

anonymous · Answer

then yeah i think i used it haha :P but idk if i did it right.. could u pls show me?

jim_thompson5910 · Answer

A = Pe^(rt) 

A = 1000*e^(0.05*10) 

A = ???

anonymous · Answer

i forget... what does the e mean?

jim_thompson5910 · Answer

e is the number 2.718..., it's like pi = 3.14159...

anonymous · Answer

ohhh i see.. so i get this?
1648.72
?? so my answer is  C.      $1,648.72
 ??? 

and e is basically ln right?

jim_thompson5910 · Answer

yeah the answer is C

jim_thompson5910 · Answer

e and ln are tied together

anonymous · Answer

kk awesome! thanks :)

anonymous · Answer

and tahts what i was thinking :)

anonymous · Answer

and tahts what i was thinking :)