SOLUTION: Need help with solving this, please? Thanks! 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 70514: Need help with solving this, please? Thanks!
Suppose that $2000 is invested at a rate of 6% per year compounded continuously. What is the balance after 1 yr? After 2 yrs?
Found 2 solutions by stanbon, funmath:
Answer by stanbon(75887) About Me  (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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Formula: A(t)=Pe^(rt)
A(1 yr) = 2000e^(0.06*1)
=$2123.67
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A(2 yr) = 2000e^(0.06*2)
=2000e^0.12
=$2254.99
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Cheers,
Stan H.

Answer by funmath(2933) About Me  (Show Source):
You can put this solution on YOUR website!
Need help with solving this, please? Thanks!
Suppose that $2000 is invested at a rate of 6% per year compounded continuously. What is the balance after 1 yr? After 2 yrs?
The formula for interest compounded continously is: highlight%28A=Pe%5E%28rt%29%29, where A=amount, t=years, and r=interest rate.
In your case P=2000; r=6/100=.06; and t1=1 and t2=2
After 1 year:
A=2000e%5E%28%28.06%29%281%29%29
A=2000e%5E.06 You need a scientific calculator for this. If your calculator doesn't have e, use 2.718281828 for e.
A=$2123.67
After 2 years:
A=2000e%5E%28%28.06%29%282%29%29
A=2000e%5E.12
A=$2254.99
Happy Calculating!!!