Question

Suppose you invest $7500 at an annual interest rate of 4.2% compounded continuously. How much will you have in the account after 2 years? Round the solution to the nearest dollar.

Answer 1

Interest=principle x rate x time (in years)
Interest=7500 (.042)(2)
Interest=630
7500+630=8130

Interest=500 (.071)(4)
Interest=142
500+142=642

Answer 2

\[\large 7500\times e^{.042\times 2}\] and calculator