$1000 is invested at a rate of 9% componded continuelsly. What is the balence at the end of 20 years?

Question

PLease explain!!! THANKX

Answer 1

Continuous compounding is the "pert" formula:

amount = p * e^rt

... where p is the initial investment, e is euler's constant, r is the annual rate, and t is the number of years.

In this example:

amount = $1000 * e^(0.09 * 20)
amount = $1000 * e^1.8
amount = $1000 * 6.04965
amount = $6,049.65