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 = Pe^{rt}

6000e^(.05*2) ≈ $6631.03

Note that continuous compounding doesn't differ much from monthly compunding.....!!!!!