You deposit $6,000 into an account that pays 5%. Find the account balance after 2 years if the interest is compounded: a) monthly b) continuously
Compounded monthly =
6000(1 + .05/12)^(2*12) ≈ $6629.65
Continuous compounding = Pert
6000e^(.05*2) ≈ $6631.03
Note that continuous compounding doesn't differ much from monthly compunding.....!!!!!