If Diane deposits $28,419 in a savings account that earns 3.5% interest per year compounded comtinuously, how much money should she expect to be in the account after 14 years?
A) $42,344.31
B) $592,820.34
C) $46,388.79
D) $17,969.79

Question

Quizplus · Accepted Answer

The formula for continuous compounding is $A = Pe^{rt}$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (decimal), and $t$ is the time the money is deposited for in years. Plugging in the given values: $A = 28419e^{0.035 \times 14}$, calculating this gives approximately $46,388.79.

If Diane Deposits $28,419 in a Savings Account That Earns