Write a compound interest function to model $15,000 invested at a rate of 2.8% compounded continuously then find the balance after 2 years

Question

Write a compound interest function to model $15,000 invested at a rate of 2.8% compounded continuously then find the balance after 2 years

Answer 1

the underlying formula that you want to use here for continuous compounding interest is

A = P*e^(rt)

for this scenario that means taking

A = 15000*e^(0.028*2)

A = 15863.97

meaning that the final balance in this scenario after 2 years is $15,863.97

Answer 2

A(2) = 15000e^(0.028)(2)