Question

Suppose you invest $2000 at an annual interest rate of 5.1% compounded continuously. How much will you have in the account after 3 years?

Answer 1

We are given

initial amount is $2000

so,
`P=2000`

annual interest rate is 5.1%

so,
`r=0.051`

time is 3 years

so,
`t=3`

it is compounded continuously

so, we can use amount formula

`A=Pe^(rt)`

where A is amount after t years

P is initial amount

r is interest rate

t is time in years

now, we can plug values

`A=2000e^(0.051*3)`

we get

`A=2330.6499`

`A=2330.65`

So, Amount after 3 years is $2330.65.........Answer