Answer:
Explanation:
To find the value of an investment compounded continuously, we can use the formula:
A = P * e^(rt)
Where:
A is the final amount
P is the principal amount (initial investment)
e is the mathematical constant approximately equal to 2.71828
r is the annual interest rate (as a decimal)
t is the time period in years
In this case, P = $10,000, r = 0.0315 (3.15% expressed as a decimal), and t = 13.
Plugging in the values into the formula, we get:
A = $10,000 * e^(0.0315 * 13)
Calculating the exponential part:
A = $10,000 * e^(0.4095)
Using a calculator or a math software, we can evaluate e^(0.4095) to get approximately 1.506.
A = $10,000 * 1.506
A ≈ $15,060.