Question

You invest $3,000 in an account that has an annual interest rate of 2.5%, compounded continuously. How much money will be in the account after 5 years? Round your answer to the nearest whole number. Show all work.

Answer 1

Here' s the equation for one year:
0.025(3000) + 3000
Because it is 5 years:
5(0.025(3000)) + 3000
0.075(3000) + 3000
We can make it simpler:
1.075(3000)
Multiply:
3225
You will have $3225