I provided a loan of $2354 to Lily that had an interest rate of 4.7%, compounded continuously. Find the balance after 5 years. Round to two decimal places.

Question

I provided a loan of $2354 to Lily that had an interest rate of 4.7%, compounded continuously. Find the balance after 5 years. Round to two decimal places.

Answer 1

The formula to use is A=Pe^rt  Where A is the final amount, P is the principal, r is the interest  rate and t is the time in years.  Therefore:

 

A= 2354e^(.047)5 = 2977.60