Question

A person invests $6750 in an account that earns 6.23% annual interest compounded continuously. Select the function that represents this scenario:

Answer 1

Answer:
`A(t)=6750e^(0.0623t)`Step-by-step explanation:

The amount invested, P₀ = $6750

Interest rate, r = 6.23%

r = 6.23/100

r = 0.0623

The amount for continuous compounding is exponential

`A(t)=P_0e^(rt)`

Substitute P₀ = $6750, r = 0.0623 into the equation above

`A(t)=6750e^(0.0623t)`