SOLUTION: Investment You put $2000 into an account earning 4% interest compounded continuously. Find the amount at the end of 8 yr.

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Question 195452: Investment You put $2000 into an account earning 4% interest
compounded continuously. Find the amount at the end of 8 yr.
Found 2 solutions by Mathtut, solver91311:
Answer by Mathtut(3670) About Me  (Show Source):
You can put this solution on YOUR website!
FV=Pe%5Ert
:
FV=2000e%5E%28.04%288%29%29
:
FV=2000e%5E.32
:
FV=2000(1.37712776)=$2754.26

Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


Use:




Where you obtain the future value, , where is the principal amount, is the base of the natural logarithms, is the interest rate expressed as a decimal fraction, and is the number of time periods.

Presuming 4% is an annual interest rate, then .

Hint: Get out your calculator or a spreadsheet

John