SOLUTION: You desposit $5000 in an account that pays 7% annual interest compounded continuously. What is the balance after 2 years?

SOLUTION: You desposit $5000 in an account that pays 7% annual interest compounded continuously. What is the balance after 2 years?

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Question 198435: You desposit $5000 in an account that pays 7% annual interest compounded continuously. What is the balance after 2 years?
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
FV = $5000*(1.07)^2 compounded annually
= $5724.50
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FV = $5000*e^(.07*2)
FV = $5751.37 compounded continuously
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