Question

$870 is invested in an account earning 2.9% interest (APR),

compounded continuously. Write a function showing the
value of the account after t years, where the annual growth
rate can be found from a constant in the function. Round all
coefficients in the function to four decimal places. Also,
determine the percentage of growth per year (APY), to the
nearest hundredth of a percent.

Answer 1

Explanation:

`\text{Continuous compounding is}\\ \\ A=Pe^(rt)\\ \\ V=870e^(0.029t)\\ \\ \text{The yearly growth rate is}\\ \\ e^0.029\approx 1.0294\\ \\ \text{Which is a growth of }2.94\%`