Question

Calculating Compound Interest HELP pls. *Will Smith face from pursuit of happiness*

Answer 1

On the day of a child's birth, a parent deposits $30,000 in a trust fund that pays 5% interest, compounded continuously. Determine the balance in this account on the child’s 25th birthday.

Answer 2

I have to use the \[P(1+\frac{ 1 }{ n })^{nt}\] ?

Answer 3

But what is n??

Answer 4

Idk how to do this, sorry

@dan815 Smart boi

Answer 5

I think you mixed up formulas.

Compound interest formula for periodic compoundings (n = times interest is compounded annually)
\[A=P \left( 1+\frac{ r }{ n } \right)^{nt}\]

Continuously compounding interest
\[A=Pe^{rt}\]

Answer 6

you want to use the second one
\[A=30000e^{(0.25\times25)}\]