The amount will be $2,300.54, considering interest rate compounding continuously and loan amount.
Given information:
Loan amount (P) = $2000
Interest rate (r) = 2% = 0.02
Time period (t) = 7 years
rt = 0.02*7 = 0.14
Amount when interest compounded continuously = Pe ^rt
Amount when interest compounded continuously= 2000(e)^0.14 = $2,300.54
In a loan, a certain amount of money is given to the other person in consideration for the value or main quantity being returned at a future stage. In many circumstances, the borrower increases the value by adding interests or finance charges, which the borrowers must pay on additional to the principal sum.
Loans may well be made for a predetermined, one-time sum or for an open-ended credit line with a cap down to a certain amount. In contrast to secured and unsecured loans, there are also commercial and private loan options.
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