Suppose that $1000 is invested at 9% interest compounded continuously. How much money would be in the bank after 5 years?

Question

seratul · Answer

@triciaal 
Please help.

jim_thompson5910 · Answer

Continuously compounded interest formula
$$\LARGE A = P*e^{r*t}$$
A = final amount in account after t years = unknown for now
P = amount deposited = 1000
r = interest rate in decimal form = 0.09
t = time in years = 5
e = 2.718 approximately (this value is a lot like pi = 3.14)

seratul · Answer

Alright, i got $1568.24
Is this correct?

jim_thompson5910 · Answer

What kind of calculator do you have?

seratul · Answer

Graphing calc.

jim_thompson5910 · Answer

A texas instrument calculator?

seratul · Answer

Yep.

jim_thompson5910 · Answer

ok use the 'e' key instead of 2.718 to get a more accurate value for A

seratul · Answer

I can't seem to find the "e" key.

jim_thompson5910 · Answer

look for the LN button, there's an "e" above it

jim_thompson5910 · Answer

the LN button is on the left side, towards the bottom

seratul · Answer

Oh, i see.
I got $1568.31 now.

jim_thompson5910 · Answer

much more accurate

seratul · Answer

Thank you very much :)

jim_thompson5910 · Answer

sorry I should have put more digits to 'e'