# 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.

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#### 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

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#### Solution Summary

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

$2.49