Answer to Question #262230 in Financial Math for morgan

Question

eric deposits $3,200 at 5.73% interest compounded continuously for 6 years what is the ending balance

Answer 1

The continuous compounding formula is,

A = Pe^rt

Where P = the initial amount

A = the final amount

r = the rate of interest

t = time

e is a mathematical constant where e ≈ 2.7183.

Thus;

A = 3,200*e^0.0573(6)

=3200*1.4103

=$4512.96