SOLUTION: You deposit $12,000 dollars in an account that pays 5.5% interest compounded monthly. What would your balance be after two years? What if the deposit in above question was comp

SOLUTION: You deposit $12,000 dollars in an account that pays 5.5% interest compounded monthly. What would your balance be after two years? What if the deposit in above question was comp

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Question 1013071: You deposit $12,000 dollars in an account that pays 5.5% interest compounded monthly. What would your balance be after two years?
What if the deposit in above question was compounded continuously? What would the balance be after 2 years?
Answer by fractalier(6550) (Show Source): You can put this solution on YOUR website!
Did this one yesterday...see my earlier solution...
$13391.86
Continuously, we have
A(2) = Pe^rt = 12000*e^(.055 * 2) =
$13395.34
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