SOLUTION: if a bank compounds continuously, then the formula used is A=Pe rt where e is a constant and equals approximately 2.7183. Calculate A with continuous compounding. Round answer to n

Question 208089: if a bank compounds continuously, then the formula used is A=Pe rt where e is a constant and equals approximately 2.7183. Calculate A with continuous compounding. Round answer to nearest cent.
deposit is 2,000 for 5 years of 8%
I'm not sure if I use the answer I received from the previous question or use the deposit,years and percent.
Found 2 solutions by Alan3354, checkley77:
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
if a bank compounds continuously, then the formula used is A=Pe rt where e is a constant and equals approximately 2.7183. Calculate A with continuous compounding. Round answer to nearest cent.
deposit is 2,000 for 5 years of 8%
----------------
FV = $2000*e^(.08*5)
FV = 2000*1.49182...
FV = 2983.65

Answer by checkley77(12844) (Show Source): You can put this solution on YOUR website!
A=Pe^rt
A=2,000*2.7183^.05*8
A=2000*2.7183^.4
A=2000*1.492
A=$2,983.66 ANS.

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