Question

If $2000 is invested at 7% compounded continuously, what is the amount after 3 years?

Answer 1

Given:

Amount = $2000

rate = 7%

time = 3 year

Amount after 3 year is:

`A=Pe^(rt)^{}`

Where:

`\begin{gathered} P\text{ = initial amount} \\ r=\text{rate} \\ t=\text{ time} \\ A=\text{ amount after t time } \end{gathered}`
`\begin{gathered} rate=(7)/(100)^{} \\ =0.07 \end{gathered}`
`\begin{gathered} A=2000e^(0.07*3) \\ =2000e^(0.21) \\ =2000*1.233 \\ =2467.35 \end{gathered}`

After 3 year amount is 2467.35