Question

Find the missing values assuming continuously compounded interest. (Round your answers to two decimal places.)

Answer 1

Answer:

$3448.81

Step-by-step explanation:

Using the compound interest formula to calculate the amount compounded after 10years.

$A = P(1+r)^{nt}$

P = principal  = $2000

r = rate (in %) = 5.6%

t = time (in years) = 10years

n = 1year = time used in compounding

$A = 2000(1+0.056)^{10} \\A = 2000(1.056)^{10}\\A = 2000*1.7244046\\A = 3448.81 (to\ 2dp)$

Amount compounded after 10 years is $3448.81