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$1000 is depostied in an account with an interest of 6.5%.Interest is compunded continuously, and no deposits orwithdrawals are made. Find the amount in the account at the endof three years

Respuesta :

Given:

Principal amount -1000

Interest =6.5 %

Time = 3 years.

The compound interest formula is

[tex]A=P(1+r)^t[/tex]

Substitute P=1000, r=6.5/100 and t=3, we get

[tex]A=1000(1+\frac{6.5}{100})^3[/tex]

[tex]A=1000(1+0.065)^3[/tex]

[tex]A=1000(1.065)^3[/tex][tex]A=1207.9496[/tex]

The amount in the account at the end of three years is $ 1207.95.

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