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Need help with math problem please!?


Please and thank you very well!!

::Recall that, when interest is compounded continuously, the balance in an account after t years is given by
A = Pe^rt,
where P is the initial investment and r is the interest rate.::


1:: Suppose that $2000 is invested at a rate of 6% per year compounded continuously. What is the balance after 1 yr? After 2 yrs?

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VTY,
Ron Berue
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After one year you have 2000 x (1 + .06) = 2,120
After two years you have 2120 x (1 + .06) = 2,247.20

the way your formula shows for year two, it would be 2000*(1.06^2) = 2247.20

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