Algebra 2 question- Logarithms

Question

Earning interest- You deposit $1000 in an account that pays 6% annual interest compounded continuously. Find the balance at the end of 2 years.

Answer 1

For continuously-compounded interest:

F = Pe^rt

 

Where

  F = future value

  P = present value

  r = annual interest rate 

  t = number of years

 

F = 1000e^(0.06*2)

 

If you turn the crank on that you will get F = $1127.50