Question

A person invests $3,500 in an account that earns 7.5% interest compounded continuously. What is the value of the investment after 4 years?

Answer 1

I think it's: 4,674.14$

Answer 2

A = $4724.36

Explanation:

P = $3500

r = 7.5% = 0.075

t = 4years

n = 365

`A = P(1 + (r)/(n))^(nt)\\\\`

`=3500(1 + (0.075)/(365))^(365 * 4)\\\\=3500(1.00020547945)^(365*4)\\\\= 3500 * 1.34981720868\\\\= 4724.36023037\\\\= \$ 4724.36`