iheartfood 2 years ago If you put \$1,000 in a savings account that pays 5% interest compounded continuously, how much money will you have in your account in 10 years? Assume you make no additional deposits or withdrawals. A. \$1,628.89 B. \$1,051.27 C. \$1,648.72 D. \$5,525.85 **my answer: A is that right??

1. jim_thompson5910

what makes you say that

2. iheartfood

well i did this earlier and i kinda forgot now, but idk if i did it right... but idk completely... :( could u pls explain it to me? :)

3. jim_thompson5910

did you use the formula A = Pe^(rt) ?

4. iheartfood

i think so... :/ for A=amount?

5. iheartfood

P=principle r=rate and t=time??? is that it?

6. jim_thompson5910

A = final amount, yes

7. iheartfood

then yeah i think i used it haha :P but idk if i did it right.. could u pls show me?

8. jim_thompson5910

A = Pe^(rt) A = 1000*e^(0.05*10) A = ???

9. iheartfood

i forget... what does the e mean?

10. jim_thompson5910

e is the number 2.718..., it's like pi = 3.14159...

11. iheartfood

ohhh i see.. so i get this? 1648.72 ?? so my answer is C. \$1,648.72 ??? and e is basically ln right?

12. jim_thompson5910

13. jim_thompson5910

e and ln are tied together

14. iheartfood

kk awesome! thanks :)

15. iheartfood

and tahts what i was thinking :)

16. iheartfood

and tahts what i was thinking :)