Question

You have $10,000 to invest for two years. Your bank offers 5% interest, compounded continuously for funds in a money market account. Assuming no additional deposits or withdrawals, how much money will be in that account at the end of two years?

Answer #1

Compute the future value of money deposited, using the equation as shown below:

Future value = Amount deposited*eRate*Time

= $10,000*e5%*2 years

= $10,000*1.1051709180756

= $11,051.709180756

Hence, the future value of the amount deposited will be $11,051.709180756.

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