If Diane deposits $16,713 in a savings account that earns 3.5% interest per year compounded continuously, how much money should she expect to be in the account after 13 years?
A) $24,317.42
B) $316,126.40
C) $26,342.59
D) $9629.59

Question

Quizplus · Accepted Answer

The formula for continuous compounding is A = Pe^(rt), where P is the principal amount ($16,713), r is the interest rate (0.035), and t is the time in years (13). Plugging in these values, A = 16713 * e^(0.035*13) ≈ $26,342.59.

If Diane Deposits $16,713 in a Savings Account That Earns