Question 174246
The formula for continuous compounding is {{{FV=Pe^(rt)}}} where FV is the future value of the investment, P is the current principal, e is the base of the natural logarithms, r is the rate per time period (per year in this case), and t is the number of time periods (number of years here).


So for the Savings Account:  {{{FV=2500e^(0.02*5)}}}



And for the CD:  {{{FV=2500e^(0.045*5)}}}


The interest earned in each case is then {{{FV-P}}}


Calculate the value of the exponent, check the "Inv" box, and then use the "ln" button on your Windows calculator in Scientific mode.  Or, if you have access to MS Excel, use the "EXP()" function to do your calculations.