Continuously compounded interest is computed as follows:
[tex]A=Pe^{rt}[/tex]
where
A: final amount
P: principal
r: annual interest rate, as a decimal
t: time, in years
Substituting with P = $1500, r = 0.05 ( = 5/100), and t = 2 years, we get:
[tex]\begin{gathered} A=1500\cdot e^{0.05\cdot2} \\ A=1500\cdot e^{0.1} \\ A=1657.76 \end{gathered}[/tex]
After two years she will have $1657.76
