If $1500 is invested in a bank account at 5% interest, find the amounts present in the account at the end of 2 years if the interest is compounded:
(i) annually,
(ii) every 3 months,
(iii) continuously.

(i) $ 1653.75

(ii) $ 1653.75

(ii) $ 1657.76

Explanation:

Since, the amount formula in compound interest,

Where,

P = Principal amount,

r = annual rate of interest,

t = number of years,

n = number of compounding periods per year,

(i) P = 1500, r = 5% = 0.05, t = 2 years, n = 1,

(ii) P = 1500, r = 5% = 0.05, t = 2 years, n = 4,

(iii) Amount formula in compound continuously,

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