SOLUTION: The formula A=2000e^rt can be used to find the dollar value of an investment of $2000 after t years when the interest is compounded continuously at a rate of r percent. Find the va
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Question 388775: The formula A=2000e^rt can be used to find the dollar value of an investment of $2000 after t years when the interest is compounded continuously at a rate of r percent. Find the value of the investment after 6 years if the interest rate is 7%. Find the value of investment after 12 years if the interest rate is 8%.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
The formula A=2000e^rt can be used to find the dollar value of an investment of $2000 after t years when the interest is compounded continuously at a rate of r percent.
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Find the value of the investment after 6 years if the interest rate is 7%. Find the value of investment after 12 years if the interest rate is 8%.
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A(12)= 2000*e^(0.07*12)
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A(12) = $4632.73
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Cheers,
Stan H.
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