Question

Steve invests $1,800 in an account that earns 3.7% annual interest, compounded continuously. What is the value of the account after 10 years? Round your answer to the nearest dollar. A. about $2,466 B. about $2,589 C. about $2,601 D. about $2,606

Answer 1

B. about $2,589

Explanation:

Given data

P=$1,800

R= 3.7%

T=10years

The expression for the compound interest is given as

A= P(1+r)^t

substitute

A= 1800(1+0.037)^10

A= 1800(1.037)^10

A=1800*1.43809495884

A=$2588.570

Hence the answer is B. about $2,589