4. You have$760,000 in your bank account. The interest rate in youraccount is 5%

Question

4. You have$760,000 in your bank account. The interest rate in youraccount is 5%. Solve for the following:

How much interest willyou earn in your account over the next five years withcontinuous compounding? this one sound similar but how would you do this one 4. You have$760,000 in your bank account. The interest rate in youraccount is 5%. Solve for the following:

How much interest willyou earn in your account over the next five years withcontinuous compounding? this one sound similar but how would you do this one

Explanation / Answer

for continuous compounding,
A = Pert  p=principal e=base of natural log r=rate t=time here p=760000 r=.05 t=5 putting the values A=760000e.05*5=975859.3

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