Question

Question 10 (5 points)Suppose you invest $800 into an annuity account that pays 7% annual interest,compounded continuously. How much will you have in the account in 10 years? f(t) =aertA) $1,603.39B) $1,633.06OC) $1,573.72D) $1,611.00tion 11 (5 points

Answer 1

The continuous interest formula is given by:

`A=Pe^(rt)`

where P is the principal, r is the interest rate and t is the time. In this case P=800, r=0.07 and t=10; then we have:

`\begin{gathered} A=800e^(0.07(10)) \\ A=1611 \end{gathered}`

Therefore, the final amount is $1611.00