Continuous compounding question - have I solved it correctly? I suppose my total capital is 2100?

Take the current amount you have in your checking or savings account. Suppose you have a choice of keeping your money for five years in a savings account with a 2% interest rate, or in a five year certificate of deposit with and interest rate of 4.5%. Calculate how much interest you would earn with each option over five years time with continuous compounding.

A = Ce^RT My total money in the bank is 2100 dollars in round figures. Since the formula for the continuous compounding is A=Ce^RT where C is the initial deposit or capital, T for time, R is the rate of interest and A will be the final amount.

Capital = 2100, Interest Rate ( R) = 2% Time (T) = 5 years, e = 2.7182818284

When money kept for five years in a savings account with a 2% interest rate:

By using the values into formula:= 2100 e ^(0.02*5) = 2318.57

Interest earned = 2318.57 鈥?2100 = 218.57 dollars

Five year certificate of deposit with interest rate of 4.5%.So A = Ce^RT 2100e^4.5*5=2680.19-2100=$516.98

Continuous compounding question - have I solved it correctly? I suppose my total capital is 2100?bridge loan

? this does not sound like homework of a student; it looks a business-like question; so my answer is: either ask in Business category or hire an experienced accountant;

Continuous compounding question - have I solved it correctly? I suppose my total capital is 2100? loan

For 2100e^(0.045*5) = $2629.88 (Check this)

For 2100e^(0.02*5) = $2320.86 (OK)