Help!
If you deposit $750 in an account that pays 8% annual interest compounded continuously, what will the balance be after five years?

Explain please?

Question

Help!
If you deposit $750 in an account that pays 8% annual interest compounded continuously, what will the balance be after five years?

Explain please?

anonymous · Answer

Use A= P(1+r/n)^nt

anonymous · Answer

Compound Interest Formula

anonymous · Answer

what do the variables stand for?

anonymous · Answer

P=initial dollar amount; 
r=interest rate expressed as a decimal fraction
t=time (in years)

anonymous · Answer

So.. $$A = 750(1+\frac{ 0.08 }{ 8 })^{8(5)}$$

anonymous · Answer

Give me the answer choices

anonymous · Answer

oh okay! 
also the answer choices are 
a. 1,277.16
b. 1,118.87
c. 1,832.06
d. 29,803.91

anonymous · Answer

oops the n is number of years.. Let me do it again

anonymous · Answer

So we have a continuous compounding...
For continuous compounding, A=Pe^(rt), where P=initial dollar amount; r=interest rate expressed as a decimal fraction; and t=time (in years).  Is this sufficient info to enable you to calculate A (the amount the account owner will have in the account after 5 years?

anonymous · Answer

yes! P=750 R=8% T=5