iheartfood
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??
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jim_thompson5910
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what makes you say that
iheartfood
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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? :)
jim_thompson5910
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did you use the formula
A = Pe^(rt)
?
iheartfood
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i think so... :/ for A=amount?
iheartfood
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P=principle
r=rate
and t=time??? is that it?
jim_thompson5910
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A = final amount, yes
iheartfood
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then yeah i think i used it haha :P but idk if i did it right.. could u pls show me?
jim_thompson5910
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A = Pe^(rt)
A = 1000*e^(0.05*10)
A = ???
iheartfood
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i forget... what does the e mean?
jim_thompson5910
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e is the number 2.718..., it's like pi = 3.14159...
iheartfood
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ohhh i see.. so i get this?
1648.72
?? so my answer is C. $1,648.72
???
and e is basically ln right?
jim_thompson5910
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yeah the answer is C
jim_thompson5910
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e and ln are tied together
iheartfood
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kk awesome! thanks :)
iheartfood
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and tahts what i was thinking :)
iheartfood
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and tahts what i was thinking :)