You deposit $500 in a savings account paying 4% interest continuously compounded. How much will the account be worth after 32 months?
A) $545.20
B) $526.10
C) $576.70
D) $556.20

Question

Quizplus · Accepted Answer

The formula for continuously compounded interest is A = Pe^(rt), where P is the principal amount ($500), r is the annual interest rate (0.04), and t is the time in years (32/12). Calculating this gives approximately $556.20.

You Deposit $500 in a Savings Account Paying 4% Interest