A bank account offers a 5% interest rate. If $3000 are deposited into this account today, what will the future value this deposit be 15 years later?

Question

Assume the interest is compounded continuously and show all work for credit. round your answer to the nearest penny.

Answer 1

A=Pe^rt 

Where P=$3000 deposit

r=0.05 or 5% interest rate

t= 15 years

e approximately 2.718

A=3000*2.718^(15*0.05)=$6351.00

 

Answer 2

3000*1.05¹⁵