Question

If you deposit $1,000 in an account that pays 6% annual interest compounded continuously, what will the balance be after five years?

Answer 1

Do you want to know how to do this or just the answer?

Answer 2

both please

Answer 3

To start off,

You're going to be multiplying 1000 by .06. This gives you the growth for the first year.

1000*.06= 60

Add the 60 to the 1000.

So, after the first year, there'd be 1,060 in the account.

Next multiply 1060* .06 to get the second years total.. 1060*.06=63.66. Now add the 63.66 to 1060. Second year total= 1093.66

Now multiply 1093.66*.06 to get the third year total.

You see what I'm getting at?

Answer 4

yeah but what's the answer

Answer 5

The answer would be 1,301.8

Answer 6

sorry but that's not right

Answer 7

i got 1338.23 by doing it same way he explained

Answer 8

1000(1.06)^5

Answer 9

that's also wrong

Answer 10

1000+1000(5)x0.08 = 1300