Question

Use the continuous change function A ( t ) = P e r t to answer the question. You invest $10,500 in an account that grows 3.75% each year. What will be your investment amount after 9 years? A. $14,715.12 B. $14781.48 C. $15,049.96 D. $16,785.21

Answer 1

Your investment amount after 9 years will be $14,715.12

Solution-

The function is,

`A(t)=Pe^(r.t)`

Where,

e = Euler's constant,

P = capital

A = future value

r = annual rate of interest

Putting the values,

`A(t)=10500e^((0.0375* 9))`

`=10500e^(0.3375)`

`=10500* 1.4014`

`=14715.12`

Therefore, your investment amount after 9 years will be $14,715.12