Question

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If $945 is invested at an interest rate of 4% per year and is compounded continuously, how much will the investment be worth in 10 years?

Use the continuous compound interest formula A = Pert.

$947
$984
$1,028
$1,410

Answer 1

Step-by-step explanation:

Looking at the formula, there are four variables which are P (principal or original amount), r (interest rate), t (time in the form of years), and A (final amount). e is not a variable because it represents a number just like
`\pi` represents a number, but e and
`\pi` are not the same in any respect.

`A=Pe^r^t`

`A=945e^(.04*10)`

Remember that you must convert the percentage into decimal form before inserting it into the equation. Your answer will be what you get after typing the equation above into the calculator. Remember to round based on what the multiple choice answers are rounded to.