Question

If you put $2,000 in a savings account that pays 6% interest compounded continuously, how much money will you have in your account in 4 years? Assume you make no additional deposits or withdrawals. (photo attached below) :)

Answer 1

you can use...
\[F=P\left[1+\frac{r}{12}\right]^t\] where t is the number of months...

Answer 2

For continuous compounding, the following formula is necessary:
\[A=Pe ^{rt}\]
where A is the amount after t years, P is the principal, r is the annual interest rate as a decimal and e is the base of natural logs.
So in your question, plugging the given values into the formula, we get:
\[A=2000\times e ^{(0.06\times4)}=you\ can\ calculate\]