Question

You invest $500 in an account with an annual interest rate of 1.1%, compounded continuously. How much money is in the account after 5 years? Round your answer to the nearest whole number.
A: $528
B: $530
C: $545
D: $560

Answer 1

Using the equation: A=Pe^(rt)
A is the Amount after the time or your answer.
P is the principal amount in this case the 500
r is the interest rate so 1.1% plug it in as .011
t is the time in years so 5 years

Answer 2

Can't you just give me the answer? Because this isn't making any sense to me.

Answer 3

A=Pe^(rt)

A=500*2.718^(0.011*5)

A = ???

Answer 4

let me know what you get

Answer 5

2,527 is what I got.

Answer 6

Which is wrong...

Answer 7

Oh, I did it again and got 258. Thanks for your help!

Answer 8

Sorry - 528

Answer 9

you are correct, nice work