SOLUTION: assume you invest 2000$ at 3.5% compounded continuously, construct an equation that describes the value of your invesment at year t

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Question 425062: assume you invest 2000$ at 3.5% compounded continuously, construct an equation that describes the value of your invesment at year t
Answer by Gogonati(855) About Me  (Show Source):
You can put this solution on YOUR website!
Solution: Denote P=2000 the initial amount invested, r=3.5%=0.035 the interest rate and t the amount of time the investment is held. The compounded continuously A(t) can be given from the equation: ( A(t) is the value of investment after t- years)
A%28t%29=P%2Ae%5Er%2At
A%28t%29=2000%2Ae%5E%280.035t%29, where e=2.718281...