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?

Algebra ->  Algebra  -> Logarithm Solvers, Trainers and Word Problems -> 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?      Log On

Ad: Algebrator™ solves your algebra problems and provides step-by-step explanations!
Ad: Algebra Solved!™: algebra software solves algebra homework problems with step-by-step help!

   

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) About Me  (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.