$100 is deposited in the bank at 5% interest compounded continuously. What will be the average value of the money in the account during the next 20 years?
The average value is the average of the values from year 0 to year 19. The value of the principal $100 remains from day 0 to 364, that is why the choice of years 0 to 19. The values are: 100.0105.0110.25115.76121.55127.62134.0140.71147.74155.13162.88171.03179.58188.56197.99207.89218.28229.2240.66252.69 for an average value of $165.33
