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?

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Question 48988: 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 Nate(3500) About Me  (Show Source):
You can put this solution on YOUR website!
Principle * Rate * Time + Principle = Interest + Principle
PRT + P = I + P
one year: 2000*0.06*1 + 2000 = $2120
two years: 2000*0.06*2 + 2000 = $2240