Hank invests $20,000.00 in savings account which pays 6 compounded continuously. Consider the following formula, where A is the ending account balance after t years, P is the initial amount of money invested, and r is the interest rate. A=P(2.71)^rt
How much money would he have in his savings account after 3 years?
A. $21,877.48
B. $23,931.20
C. $26,177.71
D. $21,232.84
How much money would he have in his savings account after 3 years?
A. $21,877.48
B. $23,931.20
C. $26,177.71
D. $21,232.84
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A=P(2.71)^rt
your entire formula is wrong.
please allow me do it the way it should be done.
{ you have not stated whether its compounded annually or half yearly etc; so i presume it to be annually compounded]
A = P (1+r/100)^t
so that
A = 20000*(1+.06)^3
= $ 23 820.32
your answer should be along the line of this answer as variations can happen if additional compounding is done.
but for 3 years at 6% p.a compounded annually on a sum of $20000, amount recd = $ 23820.32
BETTER SELECT B as answer.
your entire formula is wrong.
please allow me do it the way it should be done.
{ you have not stated whether its compounded annually or half yearly etc; so i presume it to be annually compounded]
A = P (1+r/100)^t
so that
A = 20000*(1+.06)^3
= $ 23 820.32
your answer should be along the line of this answer as variations can happen if additional compounding is done.
but for 3 years at 6% p.a compounded annually on a sum of $20000, amount recd = $ 23820.32
BETTER SELECT B as answer.
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$23,931.20