Question

Some banks now use continuous compounding of an amount invested. In this case, the equation that models the value of an initial investment of P dollars in t years at an annual

interest rate of r is given by A = Pelt. Using this equation, find the value in 5 years of an investment of $2000 that earns 7% annual interest. (Round your answer to the nearest cent.)

Answer 1

In this case, the equation that models the value of an initial investment of P dollars in t years at an annual interest rate of r is given by A = Pert.

Explanation: