Problem-simple and compound interest


Assignment:

You have $380,000 in your bank account. The interest rate in your account is 5%. Solve for the following:

a. How much interest will you accumulate if interest is compounded annually over the next five years?
b. How much interest will you earn in your account over the next five years with continuous compounding?

Provide complete and step by step solution for the question and show calculations and use formulas.

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Algebra: Problem-simple and compound interest
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