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?
The formula for interest compounded continously is: {{{highlight(A=Pe^(rt))}}}, 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^((.06)(1))}}}
{{{A=2000e^.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^((.06)(2))}}}
{{{A=2000e^.12}}}
A=$2254.99
Happy Calculating!!!