Question

Leah wants to invest $12,000 in an account that pays 4.5% annual *interest. Answer the questions below. Which equation represents the amount inthe account after t years if the interest in compounded continuously.

Answer 1

To solve this problem we use the Continuous Compound Interest formula:

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

Where A = total balance after t years, P = principal amount , r = interest rate (decimal form), and t = time in years.

Replacing the formula

`A(t)=12000e^(0.045t)`

The answer is option 1