How much would sophie have in her account at the end of 10 years if she deposit $2,000 into the account today if she earned 8 percent interest and interest is compounded continuously?
To calculate the amount that Sophie will have at the end of 10 years given that she deposited $2000 that earns a rate of 8% will be given by: A=P(1+r/100)^n where; A=future amount P=principle r=rate n=time; from our question; P=$2000 r=8% n=10 years; Thus; A=2000(1+8/100)^10 A=2000(1+0.08)^10 A=2000(1.08)^10 A=4,317.85 Therefore at the end of 10 years Sophie will have $4,317.85
