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

Question 81456: Suppose that $2000 is invested at a rate of 6% per year compounded continuously. What is the balance after 1 yr? After 2 yrs?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Suppose that $2000 is invested at a rate of 6% per year compounded continuously. What is the balance after 1 yr? After 2 yrs?
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A(t) = Pe^(rt)
A(1 yr) = 2000e^(0.06*1)=$2123.67
A(2 yrs) = 2000e^(0.06*2) = 2000e^(0.12)=$2254.99
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Cheers,
Stan H.
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