Question

A person places $7380 in an investment account earning an annual rate of

1.9%, compounded continuously. Using the formula V = Pert, where Vis
the value of the account in t years, P is the principal initially invested, e is the
base of a natural logarithm, and r is the rate of interest, determine the
amount of money, to the nearest cent, in the account after 11 years.

Answer 1

Answer: $9095.44

Explanation:

Given:

P=7380

r=1.9% = .019

t= 11

V = P
`e^(rt)` >substitute

V = 7380
`e^((.019)(11))` >Plug into calculator

V= $9095.44