Thinking About My Kitty

I went to the Bank today and to put money away for my kitty, asked the gentleman who works in the bank if I could put fifty dollas, and if he could compute how much it will earn in 5 years.

"Well, I am sorry but other department handles the computing..." said the gentleman.

I politely showed him my calculations and here it is...

MONEY = $50
TIME = 5 YEARS (putting my kitty money away-to the bank- for five years)
INTEREST = 3% (yes so low, ridiculous!)

Here is the formula: A=P x [e rt] actually e with an exponent rt (which is called continues compounding)

Translation:
A is the amount of money earned in 5 years
P is the money I am going to put in
e=2.18281828...with exponent r, which is the interest rate being multiplied by time
*Time could be days, months, or years...

Here is the computation:

$50.00 times [e exponent .03 x 5 years]=58.09

If my kitty will have a baby and I would like to put money ($100.00) away for 21 years...with the same rate, which is 3%=.03....

$100.00 x [e exponent.03 x 21]=$187.76

Let me try the other formula....A=P x [1+(r/n)]exponent n x t]
...I don't think the bank uses this anymore...

Money earned (compounded annually)
$100.00 x [1 + {(.03/1)exponent 21 x 1}]=$186.03....

Oh, look at the time....I better get some sleep...to be continued....