Practice!

Sample Problem

You deposit $5000 in an account that pays 6% annual interest compounded continuously.

What is the balance in the account after two years? Round your answer to the nearest cent.

$

Solution

The formula : A = Cert  

C - strat value; r - Interest; t- time term.

In this case, A = 5000e0.06(2)

A ≈5637.48