Answer :
Answer:
To find the compound amount and compound interest on $1000 invested at 6% compounded continuously for 3 years, we use the formula:
Compound Amount = Principal Amount × e^(rate × time)
Compound Interest = Compound Amount - Principal Amount
Plugging in the values:
Principal Amount = $1000
Rate = 6% = 0.06
Time = 3 years
e ≈ 2.71828
Compound Amount = $1000 × e^(0.06 × 3)
Compound Interest = Compound Amount - $1000
Calculating the Compound Amount:
Compound Amount = $1000 × 2.71828^(0.18) ≈ $1191.7466
Calculating the Compound Interest:
Compound Interest = $1191.7466 - $1000 ≈ $191.7466
Therefore, the compound amount is approximately $1191.7466, and the compound interest is approximately $191.7466.
