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.
$1,628.89

$1,051.27

$1,648.72

$5,525.85

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.
       $1,628.89

$1,051.27

$1,648.72

$5,525.85

anonymous · Answer

Continuous compound formula is $$P \times e ^{r \times t} $$ So If we plug in our values, we should get $$1000 \times e ^{0.05 \times 10}$$ Which is equal to appx. 1648.72