4. You have$760,000 in your bank account. The interest rate in youraccount is 5%
ID: 3091495 • Letter: 4
Question
4. You have$760,000 in your bank account. The interest rate in youraccount is 5%. Solve for the following:How much interest willyou earn in your account over the next five years withcontinuous compounding? this one sound similar but how would you do this one 4. You have$760,000 in your bank account. The interest rate in youraccount is 5%. Solve for the following:
How much interest willyou earn in your account over the next five years withcontinuous compounding? this one sound similar but how would you do this one
Explanation / Answer
for continuous compounding,A = Pert p=principal e=base of natural log r=rate t=time here p=760000 r=.05 t=5 putting the values A=760000e.05*5=975859.3