The problem is about future value so it'll need to use the formula I attached. Where N is years, K is dollars, R is interest rate.
Problem: Suppose that money is deposited daily into a savings account at an annual rate of $1000. If the account pays 5% interest compounded continuously, estimate the balance in the account at the end of 3 years.
If you see the attachment, I don't get why it's 0.05(5t). Isn't N=3?
I apologize for the messy handwriting.
Thank you!
Problem: Suppose that money is deposited daily into a savings account at an annual rate of $1000. If the account pays 5% interest compounded continuously, estimate the balance in the account at the end of 3 years.
If you see the attachment, I don't get why it's 0.05(5t). Isn't N=3?
I apologize for the messy handwriting.
Thank you!
Attachments

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