SOLUTION: Suppose that $2000 is invested at a rate of 6% per year compounded continuously. What is the balance after 1 year? After 2 years?

SOLUTION: Suppose that $2000 is invested at a rate of 6% per year compounded continuously. What is the balance after 1 year? After 2 years?

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Question 126638: Suppose that $2000 is invested at a rate of 6% per year compounded continuously. What is the balance after 1 year? After 2 years?
Answer by checkley71(8403) (Show Source): You can put this solution on YOUR website!
Pe^(RT)
2000*2.718^(.06*1)
2000*2.718^.06
2000*1.062=$2,123 AMOUNT OF THE INVESTMENT AFTER 1 YEAR.
--------------------------------
2000*2.718^(.06*2)
2000*2.718^.12
2000*1.127=$2,254.97 AMOUNT OF THE INVESTMENT AFTER 2 YEARS.
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