Chapter 4 - Exponential Functions - 4.5 The Number e - Exercises and Problems for Section 4.5 - Exercises and Problems - Page 174: 29

a) $ \$6,094.97$ b) $ \$6,107.01$

(a) Given the annual interest rate of $2 \%$, the balance $B$ after 10 years is $$ B=5000(1.02)^{10}=\$6094.97 $$ (b) Given the continuous interest rate of $2 \%$ per year, the balance $B$ after 10 years is $$ B=5000 e^{0.02 \cdot 10}=\$6107.01 $$