$1000 are deposited in an account with a 8.5% interest rate, compounded continuously. what is the balance…
$1000 are deposited in an account with a 8.5% interest rate, compounded continuously. what is the balance after 5 years? next, enter r, or the interest rate, as a decimal. r = ?
Answer
Explanation:
Step1: Convert percentage to decimal
To convert a percentage to a decimal, divide by 100. $r=\frac{8.5}{100}$
Step2: Calculate the decimal value
$r = 0.085$
Answer:
$0.085$