If $20,000 is invested in a savings account offering 3.5% per year, compounded continuously, how fast is the balance growing after 5 years? (Round your answer to the nearest cent.)

Question

anonymous · Answer

$20,000
x   3.50%
=  700 per yr
x       5  years
=  3500 total interest earned
$23,500  final available balance after 5 years. 

The balance is growing by $700 in interest per year.

anonymous · Answer

my website tells me that's not the right answer... I'm coming up with 764.99 but it's still telling me nope

anonymous · Answer

How many times per year is the Compound Interest?  And, are you adding any additional money per month besides the 20K?

anonymous · Answer

nope and the compound is continuous, your math seems right, and my math seems right, it seems like a simple pert formula that takes away the initial deposit and divided by the amount of years... but none of the answers are coming out as correct

anonymous · Answer

My savings account has a separate 0.50%  for inflation rate...maybe that's what's missing.  Good luck~