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Margaret invested 2000 at an annual interest rate of 4%, compounded continuously. If she does not make any withdrawals or deposits, approximately how much money will she have after 5 years?

Solution

Solution

Amount : 2442.81

Solution steps

Translate the problem into an equation:

A = 2000 e^{0.04 \cdot 5}

2000 e^{0.04 \cdot 5} = 2442.80551 \dots

Round to the nearest hundredth:

2442.81

Amount : 2442.81

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