If $2000 is invested at 8% compounded continuously, what is the amount after 2 years?

Question

asked Apr 8, 2023 181k views

1 Answer

Discordian · Answer 1 · 2023-04-14T19:06:51+0000

Given:

P=$2000

r=8% = 0.08

t=2 years

Then, if the interest is compounded continuously for t years at a rate of r per year, then the compounded amount is given by:

$A=P\cdot e^(rt)$

Therefore:

$A=2000\cdot e^((0.08)(2))=2000\cdot e^(0.16)=2347.02$

Answer: $2347.02