Applications of Exponential & Logarithmic Functions

Question

How much money would be in an account if $2,000$2,000 is deposited at 4%4% interest compounded continuously and the money is left for 1515 years.

How much would you need to deposit in an account now in order to have $2000 in the account in 5 years? Assume the account earns 5% interest compounded continuously.

Answer 1

For compound continuously:

1)

A = Pe^rt

A= 2000e^0.04(15)

2)

P = A/e^rt

P = 2000/e^0.05(5)

Use a calculator to finish the arithmetic.