Use the continuous compound interest
formula, A = Pe rt,
with P = 1240, r =
2.85/100 = 0.0285, t = 2.5. Therefore, So, the balance after 3 years is approximately $1,331.57. |
Question 1
| An amount of $1,240.00 is deposited in a bank paying an annual interest rate of 2.85 %, compounded continuously. Find the balance after 2½ years. |
Solution
| Use the continuous compound interest
formula, A = Pe rt,
with P = 1240, r =
2.85/100 = 0.0285, t = 2.5. Therefore, So, the balance after 3 years is approximately $1,331.57. |
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