Question

Suppose $500 is invested in an account at an annual interest rate of r =5.5%, compounded continuously.

(a) Let t denote the number of years after the initial investment and A(t) denote the amount of money in the account at time t. Find a formula for A(t).
(b) Find the amount of money in the account after 9 years and after 17 years. Round your answer to the nearest cent (hundredths).

Answer 1

Answer: a) A(t)= $500(1.055)^t

b) Amount after 9 years A(9) = $809.55

Amount after 17 years A(17) = $1242.40

Step-by-step explanation: shown in the attachment.