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17 July, 00:58

If you deposit $1000 in an account that pays 6% annual interest compounded continuously, what will the balance be after five years?

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  1. 17 July, 01:08
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    The formula is

    B = 1000e^ (yr) where y = 5 years and r = 0.06 ( = 6%)

    so answer is 1000e^ (5*0.06) = $1349.86
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