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# Algebra: interest

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1.Suppose \$2000 is invested at an annual interest rate of 5%. Compute the balance after 10 years if the interest is compounded monthly.

https://brainmass.com/math/basic-algebra/exponential-logarithmic-functions-interests-291826

#### Solution Preview

At!
1. Suppose \$2000 is invested at an annual interest rate of 5%. Compute the balance after 10 years if the interest is compounded monthly.

A= 2,000(1+0,05/12)^12*10
2,000(1.0041666)^120
2,000*1,65
3294.02

2. Repeat problem 1, if the interest is compounded continuously.

A= 2,000 e^.05*10
2,000 e^.5
3,292.42

3. Solve for x: 5 = e5x
Ln5 = 5x lne
1.61 = 5x
...

#### Solution Summary

The expert finds the balance of an amount invested for ten years, when the interest is compounded monthly

\$2.49