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?

Answer 1

1.1% of 500 = 5.5
after 1 year = 500+5.5=505.5

1.1% of 505.5 = 5.561
after 2 years = 505.5+ 5.561

1.1% of (505.5+5.561) etc....

so this until you get five years :)

Answer 2

I got 522.242 that's not any of the answers tho

Answer 3

the closest one to is 528 and in the question it says round to nearest whole number would that be it?

Answer 4

let me do it myself and i'll compare with you in a minute :)

Answer 5

ok thanks:)

Answer 6

Okay I got
528.111692

which would round down to 528 :)

Answer 7

thank u so much!!

Answer 8

No problem dear :)