Suppose you have a choice of keeping $500 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.
for the first part, would it be A(5)=500*e(.02*5/100)
A(5)=2550.5?
that doesnt seem right to me, but im not sure what else to do.