Math people...continuous growth and the number e?

Ok, a bit confused (I wanna get things cleared up for a PRE-test tomorrow)

Ok...

Here%26#039;s some I%26#039;m confused on (practice)

1. At time t in years, the value, V, of an investment of $1000 is given by V=1000e^0.02t. When is the investment worth $3000?

Also,

What is the nominal and effective annual rates for an account paying the stated annual interest, compounded?

3%

a) annually

b) quarterly

c) daily

d) continuously

That one I%26#039;m very confused on:-(

Also,

3. A bank pays interest at the nominal rate of 4.2% per year. What is the effective annual yield if compounding is

a) annual

b) monthly

c) continuous

THANKS SO much

and please show all work so I understand (explanation is good too!)...no magic numbers!!!

Math people...continuous growth and the number e?small business loans

Wikipedia is your friend:

http://en.wikipedia.org/wiki/Compound_in...

For the calculations for part 3, try:

http://www.moneychimp.com/calculator/com...