Question

You invest $500 in an account with an annual interest rate of 1.1%, compounded continuously. How much money is in the account after 10 years?

Answer 1

A=P(1+$\frac{r}{100} )^{n}$
A=500(1+$\frac{1.1}{100} )^{10}$
A=500(1.011$)^{10}$
A=500(1.1156)
A=557.80

Answer 2

For continuous compounding, the formula is:
$A=Pe^{rt}$
where e is the base of natural logs.
$A=500\timese^{0.011\times10}=558.14$
So the amount after 10 years is $558.14